IREX IV Industrial Portfolio DST Overview
The IREX IV Industrial Portfolio DST is a private real estate offering sponsored by Invesco Real Estate Exchange LLC ("IREX"), an indirect subsidiary of Invesco Real Estate Income Trust Inc. ("INREIT"), a Maryland corporation that has elected to be taxed as a real estate investment trust. INREIT is externally managed by Invesco Advisers, Inc., an indirect wholly owned subsidiary of Invesco Ltd., a global investment manager, and the Adviser utilizes the personnel and global resources of Invesco Real Estate, Invesco's dedicated real estate investment center. The investment is structured as class 1 beneficial interests in a Delaware Statutory Trust (DST) formed under Chapter 38 of Title 12 of the Delaware Code, offered on a private-placement basis exempt from registration under the Securities Act of 1933 and sold only to accredited investors as defined in Rule 501(a) of Regulation D. Consistent with the IREX program, the trust's property is 100% master leased to a special-purpose Master Tenant wholly owned by Invesco REIT Operating Partnership LP under a net master lease, with the Manager collecting rent from the Master Tenant and making distributions to beneficial owners. The offering is positioned in the industrial asset class, one of the income-oriented property types (multifamily, industrial, office, retail, medical, storage, or other) that the IREX program targets as stabilized, professionally managed commercial real estate in the United States. Because the interests are intended to qualify as replacement property for a tax-deferred exchange under Section 1031 of the Internal Revenue Code (and, for some investors, Section 1033), the structure is designed principally for 1031 exchangers seeking to defer capital-gains and depreciation-recapture tax while owning a fractional interest in institutionally managed real estate without day-to-day management responsibility. A distinctive feature of the IREX platform is the FMV Option, under which the Operating Partnership may, at its discretion, acquire investors' interests in exchange for Operating Partnership units (a Section 721 UPREIT contribution) or cash, potentially providing a path into INREIT's broader, professionally managed portfolio. The specific property, purchase price, financing, occupancy, tenancy, projected distributions, hold period, and offering size for this particular offering are set forth in the separate Property Supplement that accompanies the Program Memorandum. The offering suits accredited, longer-term investors who can bear illiquidity, cede control to the Sponsor, and are using a DST to complete a Section 1031 exchange.
Highlights
Because the accompanying Property Supplement, rather than the Program Memorandum, sets out the specific market and address for this offering, location strength is framed here at the program and strategy level. The IREX program targets stabilized, income-oriented commercial real estate located in the United States, and industrial is one of the core asset classes Invesco Real Estate pursues on behalf of INREIT and its investors. Invesco Real Estate is the dedicated real estate investment center of Invesco Ltd., a global investment manager, and the Adviser utilizes its personnel and global resources to source, underwrite, and manage assets. Prospective investors should review the Property Supplement for the metropolitan market, submarket, and property-level location detail, including local supply-and-demand, occupancy, and rental-rate context, before subscribing, because the memorandum expressly cautions that the value and performance of the property depend on local population trends, market and neighborhood conditions, competition from similar properties, interest and real estate tax rates, and other factors beyond the Manager's control.
The trust's property is held under the IREX net-lease structure: it is 100% master leased to a special-purpose Master Tenant wholly owned by Invesco REIT Operating Partnership LP, which in turn subleases the space to the end tenant or tenants. This structure is intended to deliver current income to beneficial owners through rent paid under the Master Lease while professional management handles operations, leasing, and tenant relationships. The specific buildings, square footage, occupancy, and the identity and creditworthiness of the end tenants are described in the Property Supplement rather than in the Program Memorandum, so investors should evaluate tenant quality, lease terms, and remaining lease duration there. The memorandum is candid that the property's success is materially dependent on the financial stability of the end tenants and of the Master Tenant and Guarantor, that the trust receives no benefit from any increased subtenant rents the Master Tenant earns, and that a tenant default, casualty, or condemnation could impair income and value. Industrial assets are among the income-oriented, professionally managed property types the IREX program is designed to hold.
The IREX program contemplates that an offering may include mortgage indebtedness and other borrowings at the property level, with the specific loan amount, lender, rate, term, amortization, and loan-to-value for this offering set out in the Property Supplement. Investors purchase interests for cash and assume a pro rata share of any trust-level debt. A defining constraint of the DST structure is that the trust is prohibited from refinancing or renegotiating its loan except upon the Master Tenant's bankruptcy or insolvency; if new financing becomes necessary, the trust must sell the property or convert to a Springing LLC via a Transfer Distribution, which generally forfeits future 1031 eligibility. The purchase price of the interests equals the appraised value of the property (subject to the Master Lease) plus an upfront markup for offering costs, including a sales commission of up to 5%, a dealer manager fee of up to 1%, a placement fee of up to 1%, organization-and-offering and other closing-cost reimbursements of up to 0.5% each, and loan fees of up to 1% of any mortgage principal. Ongoing fees include a management fee of up to 0.15% per year and an investor servicing fee of up to 0.25% per year, plus a disposition fee of up to 1% of gross sale proceeds if the property is sold to a third party.
The offering is sponsored by Invesco Real Estate Exchange LLC and sits within the Invesco platform: the trust's assets are ultimately connected to Invesco Real Estate Income Trust Inc. (INREIT), a REIT externally managed by Invesco Advisers, Inc., an indirect wholly owned subsidiary of Invesco Ltd., a global investment manager. Investment management services are provided using the personnel and global resources of Invesco Real Estate, Invesco's dedicated real estate investment center. The Manager, an Invesco affiliate, has broad authority over the trust and sole discretion over when and whether to sell the property, and the Delaware Trustee may remove the Manager only for cause (fraud or gross negligence causing material damage to or diminution in value of the property). Because INREIT is an SEC-reporting company that files Forms 10-K, 10-Q, and 8-K under CIK 0001756761, investors and advisors can review INREIT's public financial disclosures as part of their due diligence, an unusual degree of sponsor-level transparency for a private DST. Investors should note, however, that the Sponsor and its affiliates receive substantial compensation regardless of investor returns, and that arrangements between the trust and Invesco affiliates are not the result of arm's-length negotiation.
The interests are structured to qualify as replacement property for a tax-deferred exchange under Section 1031 of the Internal Revenue Code (and, for eligible investors, Section 1033), allowing an exchanger to defer capital-gains and depreciation-recapture tax while reinvesting into professionally managed real estate. Tax Counsel is expected to opine that the trust should be treated as an investment trust (a grantor trust) under Treasury Regulation 301.7701-4, so that beneficial owners are treated as owning undivided fractional interests in real property, the treatment that supports 1031 eligibility and which rests principally on IRS Revenue Ruling 2004-86. The IREX platform's distinguishing feature is the FMV Option: beginning two years after the last investor acquires its interest, and during a one-year option window, the Operating Partnership may, at its sole discretion, acquire the interests in exchange for Operating Partnership units (a Section 721 UPREIT contribution) or cash. Receiving OP units can defer gain and offers potential access to INREIT's diversified portfolio, redemption windows, a share repurchase program, and a possible step-up in basis for heirs; however, once units are received the investor can no longer complete an individual 1031 exchange, and a cash election is a taxable event unless separately exchanged.
Analysis of IREX IV Industrial Portfolio DST
Insights
Read correctly, this is a debt-free, institutionally-sponsored income proxy dressed as an industrial DST. With zero leverage — in-place LTV of 0% and no trust-level mortgage — the full ~$94M is equity, so the return is unlevered net income less fees, without the refinance or balloon risk that defines most net-lease DSTs. On relative value the yield is thin: the ~4.33% distribution screens Below Average against the ~5.4% industrial income benchmark and Below Average on peak yield versus ~5.8%, so the exchanger takes nearly 100 bps under the peer set. The discount buys safety and pedigree — an all-cash balance sheet, Invesco as manager, and INREIT's public SEC filings (CIK 0001756761) — not income. The payout also sits well below the ~6.9% cap-rate-equivalent, so distributions are conservatively covered by property income, not propped by financing (there is none), though little of the asset's yield reaches the investor. The ~7% load is moderate — with no mortgage the loan fee falls away — so the buyer pays mainly for institutional access and must still see appreciation to recover it. The outcome hinges on the exit, not the coupon: the two-year hold is not a sale assumption but alignment with the FMV/721 window (open one year, two years after final closing), and that UPREIT roll into INREIT is entirely at the Operating Partnership's discretion — likelier when the property performs than when it does not. The 721 thus cannot be underwritten as a guaranteed liquidity event; unexercised, it leaves an all-cash, single-asset, indefinitely-held DST whose value then turns on end-tenant credit, lease duration (set out in the Property Supplement, not the Program Memorandum), and the exit cap rate — the items we would watch most. Suitability is narrow: it fits an accredited 1031 exchanger with an all-cash or low-debt relinquished position, a capital-preservation mindset, no near-term liquidity need, and comfort ceding control to an Invesco affiliate for below-market income plus optional UPREIT liquidity. It is a poor fit for anyone needing replacement debt to offset mortgage boot — this deal supplies none — reaching for yield, or treating the 721 as a certain exit; the $250,000 minimum further limits it to larger exchanges.
Advantages
Institutional sponsorship: the offering is backed by Invesco Real Estate Exchange LLC and the broader Invesco platform, with investment management drawing on the personnel and global resources of Invesco Real Estate; the ultimate REIT vehicle, INREIT, is an SEC-reporting company (CIK 0001756761), giving investors and advisors access to public, sponsor-level financial disclosures that most private DSTs do not provide. Passive, professionally managed income: the property is 100% master leased to an Invesco-owned Master Tenant under a net master lease, so beneficial owners receive current-income distributions without landlord responsibilities. Section 1031 eligibility: the interests are structured as real-property interests intended to serve as replacement property for a 1031 (or 1033) exchange, enabling deferral of capital-gains and depreciation-recapture tax, and the fractional structure lets an exchanger match equity and debt precisely and close within the exchange deadlines. Optional 721 exit: the FMV Option offers a potential, sponsor-initiated path to exchange interests for OP units in Invesco's operating partnership, which can provide diversification into INREIT's broader portfolio, access to redemption windows and a share repurchase program, estate-planning flexibility, and a potential step-up in basis for heirs, features rarely available to direct property owners. Industrial focus: the offering is positioned in the industrial asset class, one of the income-oriented property types Invesco Real Estate targets. Defined, disclosed fee schedule: the ongoing management fee (up to 0.15% per year) and investor servicing fee (up to 0.25% per year) are modest and clearly stated, and the trust is intended to hold the property for at least two years, aligning with a medium-term, income-oriented strategy. Property-level specifics, including market, tenancy, financing, and projected distributions, are detailed in the accompanying Property Supplement for investor review.
Concerns
An investment in the interests is speculative, involves a high degree of risk, and investors must be prepared to bear a total loss. Illiquidity: there is no public market for the interests, they generally cannot be resold or transferred except through registration or exemption, they are unlikely to be accepted as loan collateral, and the investment should be viewed as long-term and held for an indefinite period. No control: beneficial owners have no voting rights and no role in management; the Manager, an Invesco affiliate, has sole discretion over operations and over when and whether to sell the property, and may be removed only for cause. Concentration: a single-property (or same-asset-class, same-market) DST is not a diversified investment, so poor performance of the property directly impairs returns. DST rigidity: the trust cannot refinance, raise new capital, renegotiate the master lease, or enter new leases except upon Master Tenant bankruptcy or insolvency; if action is required, the trust must sell or convert to a Springing LLC via a Transfer Distribution, which generally destroys future 1031 eligibility and may require additional capital that the newly formed manager is not obligated to provide. Leverage: any mortgage debt increases risk, since shortfalls reduce distributions, defaults can trigger foreclosure, and a foreclosure is treated as a taxable sale that can create phantom gain without cash proceeds; balloon maturities, variable-rate exposure, and the inability to refinance (available only after a Transfer Distribution) add further risk. Fees and load: the purchase price is marked up above appraised value by offering costs, including a sales commission of up to 5%, a dealer manager fee of up to 1%, a placement fee of up to 1%, up to 0.5% each for organization/offering and closing costs, and up to 1% loan fees, so the property may need to appreciate meaningfully before an investor recovers the full amount paid. Reliance on the Master Tenant and Guarantor: distributions depend on rent paid under the master lease, a tenant default, casualty, or condemnation could impair income and value, and investors receive no audited financial statements for the property. Tax uncertainty: 1031 treatment relies on a Tax Counsel opinion (not a guarantee) and on Revenue Ruling 2004-86, which the IRS could modify or revoke, and the IRS may challenge the structure. FMV Option is not investor-controlled: the Operating Partnership may choose never to exercise it and is less likely to exercise it if the property underperforms. Conflicts of interest: the Sponsor and affiliates earn substantial compensation regardless of investor outcomes, agreements are not arm's-length, there is no minimum offering, and disputes must be brought in Dallas, Texas with a waiver of jury trial.
IREX IV Industrial Portfolio DST — Complete Offering Data
Offering & Structure
Investment NameIREX IV Industrial Portfolio DST
SponsorInvesco
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusClosed
Last Updated2026-08-03
Size & Availability
Total Offering$93,978,495
Equity$93,978,495
DebtAll-Cash
Available Equity$0 (0% of equity)
Minimum Investment$250,000
Total Load7.00%
Property
Property TypeIndustrial
StrategyCore
LocationFL, NC
Market TierTier 2
Income & Projections
Average Yield4.33%
Projected Yields (Y1–Y10)Y1 4.33% · Y2 4.33%
Tax-Adjusted Yield5.60%
Cap Rate Equivalent6.92%
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period2 years
721 Exchange ExitMandatory
Benchmarks (vs sector median)
Avg. Income4.33% vs 5.33% market — Below Average
Growth0.00% vs 15.09% market
Peak4.33% vs 5.80% market — Below 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.
