BR Diversified Industrial Portfolio 7, DST Overview
BR Diversified Industrial Portfolio 7, DST is a Regulation D, Rule 506(c) private placement offered exclusively to accredited investors and sponsored by Bluerock through BIGR Exchange 7 TRS, LLC, with advisory services provided by Bluerock Value Exchange, LLC. The Trust, a newly formed Delaware statutory trust, owns a portfolio of five single-tenant industrial properties across four states, acquired for an aggregate purchase price of $48,433,606 and appraised by Colliers International at an as-is value of $49,800,000. The assets are the Beachwood Property and the Saland Property (both in Jacksonville, FL), each leased to employee-owned Woodsman Kitchens & Floors; the Corporate Property in Bridgeton, MO (St. Louis market), leased to BlueLinx Corporation (NYSE: BXC); the Quality Property in Prince George, VA (Richmond market), leased to national homebuilder NVR, Inc. (NYSE: NVR); and the Shields Property in Huntsville, AL, leased to DESHAZO Automation. Each building sits on an in-place absolute or triple-net sublease, and the portfolio carries a weighted average lease term of nearly 12 years. The Trust leases all five properties to an affiliated Master Tenant under a master lease designed to support monthly distributions. The offering raises up to $60,051,084 of Class 1 beneficial interests on an all-cash, unleveraged basis with no mortgage debt, at a $100,000 minimum representing an approximately 0.1665% interest. Because it is structured as a DST, the interests are intended to qualify as like-kind replacement property for a Section 1031 exchange. The offering suits accredited 1031 exchangers seeking passive, professionally managed industrial real estate with durable net-lease income, geographic and tenant diversification, and a potential Section 721 UPREIT exit into the Bluerock Industrial Growth REIT operating partnership over an approximately seven-to-ten-year hold.
Highlights
The portfolio is geographically diversified across high-demand Sunbelt and industrial-corridor markets: Jacksonville, FL (two assets), the St. Louis, MO metro, the Richmond, VA metro, and Huntsville, AL. Each location was selected for logistics connectivity. The Corporate Property in Bridgeton sits less than a mile from Highway 370 with direct access to Interstates 70 and 270, roughly 3.5 miles from St. Louis Lambert International Airport and about 20 miles from the Port of Metropolitan St. Louis, described in the PPM as the second-largest inland port system in the United States. The Quality Property is located adjacent to Interstate-295 with linkage to I-85 and I-95, surrounded by established operators such as Rolls-Royce and Ace Hardware. Per the PPM, in-place rents across the portfolio average approximately 25% below current submarket levels, and CoStar projects cumulative market rent growth of roughly 13% through 2029, supporting the case for embedded upside as leases mark toward market over the hold period.
The five single-tenant buildings span office/warehouse, distribution, light-manufacturing and manufacturing uses and were built between 1996 and 2021, with the Quality Property receiving a 2023 office expansion. Tenancy blends publicly traded, credit-rated names with established private operators. BlueLinx Corporation (NYSE: BXC) treats the Corporate Property as a mission-critical, dual-rail St. Louis distribution hub serving top suppliers including Georgia-Pacific and Huber Engineered Woods. NVR, Inc. (NYSE: NVR), one of America's largest homebuilders serving 36 metro areas, occupies the Quality Property. Woodsman Kitchens & Floors, a 100% employee-owned company founded in 1983, leases both Jacksonville assets, and DESHAZO Automation, a family-owned crane manufacturer founded in 1972 with more than 25,000 overhead cranes in service worldwide, occupies the Shields Property. Leases are absolute or triple-net with contractual annual escalations and a weighted average term of nearly 12 years. The Corporate and Quality Properties also feature hard-to-replicate industrial outdoor storage, including roughly nine acres at the Quality Property, a scarce and increasingly valued feature.
The Trust acquired all five properties free and clear, with no mortgage debt, resulting in an all-cash, fully unleveraged capitalization. Because there is no loan, the offering carries no loan-to-value ratio, no debt-service coverage requirement, no lender cash-management traps, and no balloon-maturity or refinancing risk that could force a sale or impair equity in a distressed credit market, a meaningful structural advantage over leveraged DSTs. The maximum offering amount of $60,051,084 funds the property purchase price of $48,433,606 plus the acquisition fee of $1,331,924, organization and offering expenses, sales commissions, and reserve funding. The Trust establishes a Supplemental Trust Reserve of $1,750,000 plus approximately $150,000 in the Trust Operating Account, roughly $1,900,000 combined, which the PPM notes exceeds the approximately $607,656 of estimated near-term capital repairs identified in the Property Condition Assessments and is well above the Trust's projected responsibility over a 12-year hold. Property income flows to the Trust through the master lease as Base Rent, Additional Rent and Supplemental Rent to support monthly distributions to beneficial owners.
The offering is sponsored by Bluerock, an established name in the 1031/DST industry. It is issued by BIGR Exchange 7 TRS, LLC, an indirect wholly owned taxable REIT subsidiary of Bluerock Industrial Holdings, LP, with advisory services from Bluerock Value Exchange, LLC (BVEX), a national sponsor of syndicated Section 1031 offerings focused on residential and industrial properties. The assets connect to Bluerock Industrial Growth REIT, Inc. (BIGR), which as of September 30, 2025 reported gross asset value of approximately $505 million across controlling and non-controlling interests in 37 properties and roughly 4 million square feet, and which is organized to qualify as a REIT. Per the PPM, Bluerock principals collectively hold over 100 years of investing experience, more than $120 billion in combined real estate and capital markets experience, and $20 billion in acquired and managed assets across public and private programs. The Trust is managed by BR DIP 7 DST Manager, LLC, an affiliate led by senior members of the Sponsor's management team, with CSC Delaware Trust Company as Delaware trustee and Bluerock Capital Markets LLC serving as managing broker-dealer for the Offering.
Structured as a Delaware statutory trust, the interests are intended to qualify as like-kind replacement property for investors completing a Section 1031 exchange, allowing deferral of capital gains from the sale of relinquished real estate; projected monthly distributions may be partially sheltered by depreciation and amortization. A defining feature is the exit path: beneficial owners grant the Bluerock operating partnership a fair-market-value (FMV) Option to acquire their interests. If the option is exercised, contributing (non-cash) investors receive OP Units in the operating partnership on a generally tax-deferred basis under Section 721 of the Code, an UPREIT transaction that defers gain while converting a single-offering DST position into an interest in a larger, diversified, professionally managed industrial REIT, with OP Units generally redeemable over time for REIT common stock. The Sponsor also contemplates, under limited circumstances, a future Section 1031 exchange at disposition. Investors should note that 1031 qualification depends on each investor's own facts, no legal opinion is provided, and both the FMV Option and OP Unit ownership carry their own tax risks. Projected hold is approximately seven to ten years.
Analysis of BR Diversified Industrial Portfolio 7, DST
Insights
For a 1031 exchanger, this offering fits an investor who wants passive, institutionally managed industrial exposure and prizes downside protection over leveraged upside. The all-cash structure is the headline risk mitigant: with no debt, there is no refinancing wall, no lender cash sweep, and no scenario in which a maturing loan forces a distressed sale, the failure mode that has damaged investor capital in many leveraged net-lease and multifamily DSTs. The trade-off is that unleveraged deals typically produce lower cash-on-cash yields and forgo the return amplification that prudent leverage can provide; here the Sponsor targets a distribution starting near 4.97% and ramping to a projected 5.06% to 6.12% by years two through ten, a modest but rising coupon that depends on contractual escalations plus Additional and Supplemental Rent above stated hurdles under the master lease. Because all five properties are 100% leased to single tenants, the key variables to watch are tenant credit and lease rollover rather than lease-up occupancy: BlueLinx and NVR are public and comparatively transparent, while Woodsman and DESHAZO are private, unrated operators whose health is harder to underwrite, and the nearly 12-year weighted average lease term is a genuine cushion against near-term rollover. The roughly 25% below-market in-place rents and projected 13% market rent growth through 2029 are the primary sources of upside, but that value is only realized at sale or mark-to-market, not during the hold. The most important item to scrutinize is the load: investors pay $60,051,084 for real estate appraised at $49,800,000 and purchased at $48,433,606, so roughly 19% to 20% of invested equity goes to acquisition markup, fees, commissions and reserves, and the portfolio must appreciate materially before an investor is whole on a like-kind basis. The exit is a differentiator and a dependency at once: the Section 721 FMV Option lets Bluerock absorb the portfolio into its operating partnership in exchange for OP Units, continuing tax deferral and swapping a single-offering position for a larger diversified REIT interest, but it also means investors do not control the timing or form of the exit, OP Units carry their own valuation, distribution and liquidity risks, and the value ultimately depends on a roughly $505 million non-traded REIT platform. Relative to leveraged single-tenant DSTs, this offering trades yield for resilience and diversification across five assets, four tenants and four states; relative to all-cash net-lease programs from sponsors such as ExchangeRight, the differentiators are the industrial focus, the below-market-rent upside story, and the Bluerock UPREIT exit. Suitable for accredited investors comfortable with illiquidity, sponsor and affiliate reliance, and a seven-to-ten-year horizon who value capital preservation and tax deferral over maximized current income.
Advantages
This is an all-cash, unleveraged industrial portfolio, which eliminates refinancing, balloon-maturity and lender-default risk that has pressured many leveraged DSTs, and removes any loan-to-value concern. It offers genuine diversification for a single offering: five properties, four tenants, four states and multiple industrial uses, reducing reliance on any one asset, tenant or market. Credit quality is a strength, with two publicly traded tenants, BlueLinx (NYSE: BXC) and homebuilder NVR (NYSE: NVR), alongside long-tenured private operators Woodsman and DESHAZO. The leases are absolute or triple-net with contractual annual rent escalations and a weighted average lease term of nearly 12 years, providing durable, largely predictable cash flow. Per the PPM, in-place rents average roughly 25% below submarket levels with CoStar projecting about 13% cumulative market rent growth through 2029, and the Corporate and Quality Properties include scarce industrial outdoor storage, all supporting potential appreciation. The portfolio was acquired for more than $1,350,000 below its aggregate Colliers appraised value of $49,800,000. The Sponsor targets monthly distributions starting at 4.97% annualized in 2026 and projected to range from 5.06% to 6.12% in years two through ten, partially tax-deferred. Reserves of approximately $1,900,000 exceed identified near-term capital needs. Investors also gain access to an established sponsor in Bluerock, professional institutional management, a low $100,000 minimum, full Section 1031 eligibility, and an optional Section 721 UPREIT exit into a larger industrial REIT.
Concerns
The interests are illiquid, with no public market and significant transfer restrictions; investors must be prepared to hold for an indefinite period, and the PPM warns they may not realize a return for years, if at all, and could lose their entire investment. As with any DST, beneficial owners have no control or voting rights over the Trust or the properties, the trustee has only limited powers, and decisions rest with the affiliated Manager. The structure depends heavily on the Sponsor and its affiliates, creating multiple disclosed conflicts of interest. The Master Tenant is an affiliate of the Sponsor that the PPM notes will have limited capital and depends on the operating partnership funding a Demand Note; any Master Tenant default, financial difficulty or bankruptcy would adversely affect distributions. Revenue ultimately depends on individual industrial tenants, two of which (Woodsman and DESHAZO) are privately held and not credit-rated, so a single tenant default or vacancy would meaningfully impact a five-asset portfolio with limited diversification. Fees and load are substantial: sales commissions and expenses of up to 9.45% of the offering (about $5,674,827 at the maximum) plus a $1,331,924 acquisition fee, meaning investors commit $60,051,084 for a portfolio purchased at $48,433,606 and appraised at $49,800,000, a spread that must be overcome through income and appreciation. Distributions are not guaranteed and may be supported in part by reserves rather than operations. Tax benefits are not assured: 1031 qualification depends on each investor's facts, no legal opinion is provided, the existence of the FMV Option creates tax risk, and OP Unit ownership carries additional risks. The Beachwood, Saland and Quality Properties sit in hurricane-susceptible zones, and environmental and general real estate risks apply. The offering is unavailable to ERISA plans, IRAs, other tax-exempt entities and foreign persons.
BR Diversified Industrial Portfolio 7, DST — Complete Offering Data
Offering & Structure
Investment NameBR Diversified Industrial Portfolio 7, DST
SponsorBluerock
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusLimited Availability
Last Updated2026-08-10
Size & Availability
Total Offering$60,051,084
Equity$60,051,084
DebtAll-Cash
Available Equity$1,065,000 (1.8% of equity)
Minimum Investment$100,000
Total Load11.67%
Initial Reserves2.91%
Property
Property TypeIndustrial
StrategyCore-Plus
LocationAL, FL, MO, VA
Market TierTier 3
Income & Projections
Average Yield5.51%
Projected Yields (Y1–Y10)Y1 4.97% · Y2 5.06% · Y3 5.17% · Y4 5.31% · Y5 5.46% · Y6 5.57% · Y7 5.68% · Y8 5.80% · Y9 5.95% · Y10 6.12%
Tax-Adjusted Yield6.87%
Cap Rate Equivalent7.57%
Year 1 NOI$3,225,967
Y1 Payout Ratio1.08
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period7-10 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income5.51% vs 5.33% market — Meets Average
Growth23.14% vs 15.09% market — Above Average
Peak6.12% vs 5.80% market — Meets Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
