IREX V Diversified Portfolio DST Overview
IREX V Diversified Portfolio DST is a Regulation D, Rule 506(b) private placement sponsored by Invesco Real Estate Exchange LLC (IREX), an indirect subsidiary of Invesco Real Estate Income Trust Inc. (INREIT) and part of Invesco Real Estate, the real estate investment center of global asset manager Invesco Ltd. The offering sells Class 1 beneficial interests in a Delaware statutory trust (the Parent Trust) that indirectly owns two recently built, income-producing commercial properties through two wholly owned operating trusts. The Elizabeth on Seventh Property is a four-story, mixed-use office and retail building of approximately 100,537 net rentable square feet, built in 2022, at 1942 East Seventh Street in the Elizabeth neighborhood of Midtown Charlotte, North Carolina; as of March 31, 2026 it was 95.3% leased to 19 office and retail/restaurant tenants. The Gateway One Property is a single-story, modern industrial/distribution facility of approximately 252,720 net rentable square feet, built in 2023, at 425 Distribution Drive in West Columbia, South Carolina, one block from the Columbia Metropolitan Airport; as of March 31, 2026 it was 100% occupied by four tenants. The combined appraised value, subject to the master lease, is $90.8 million, and the maximum offering amount is $97,634,409 of equity representing 100% of the Interests. Both properties are owned in fee simple and are not encumbered by any financing, making this an all-cash, debt-free (unleveraged) DST. Each property is 100% net master-leased for 20 years to INREIT Master Lessee V LLC, a subsidiary of the Invesco REIT Operating Partnership, whose obligations are guaranteed by the Operating Partnership. The Manager, Invesco DST Manager LLC, distributes available cash to investors at least quarterly. Structured to serve accredited investors completing a Section 1031 (or 1033) tax-deferred exchange, as well as those seeking passive, professionally managed real estate income, the offering carries a $250,000 minimum investment and includes a fair-market-value (FMV/UPREIT-style) option that may allow investors to exit into Operating Partnership units.
Highlights
Both assets sit in growing Southeastern markets along the Carolinas' interstate corridors. The Elizabeth on Seventh Property is in Midtown Charlotte, roughly one mile southeast of Downtown within the Charlotte-Gastonia-Concord MSA - a population of approximately 2.9 million, the nation's second-largest banking center and home to Bank of America's headquarters and Wells Fargo's East Coast operations. The site sits near Atrium Health Mercy and Novant Health Presbyterian Medical Center hospitals and just off Interstate 277/77, about seven miles from Charlotte-Douglas International Airport. The Gateway One Property is in the Columbia, South Carolina MSA (about 0.9 million residents), anchored by the state capital, the University of South Carolina, healthcare, military installations and a growing automotive and advanced-materials manufacturing base. It is one block east of the Columbia Metropolitan Airport and under a mile from Interstate 26, served by CSX and Norfolk Southern rail and the Port of Charleston roughly 120 miles away - logistics fundamentals that support durable industrial demand.
Both properties are new construction with strong in-place occupancy. The 2022-built Elizabeth on Seventh building offers ground-floor retail and restaurants with office space above, a structured parking deck with 359 spaces, and was 95.3% leased to 19 tenants as of March 31, 2026 - a granular rent roll spanning advertising, architecture (Hord Coplan Macht), beverage distribution (Adams Beverages), fitness (Barre3), and full-service restaurants including Catalina (guaranteed by Mike Ditka's) and Rosemont Market and Wine Bar. The 2023-built Gateway One industrial facility offers approximately 252,720 square feet with 27 dock-high doors, two drive-in doors, 131 trailer parking stalls and 35 future knock-out panels for expansion, and was 100% occupied by four tenants: L&L Products (33.33%), Local Boy Outfitters, Muc-Off USA (guaranteed by Muc-Off Limited) and Mattress Warehouse (each about 22.22%). Third-party property condition assessments rated both assets in good to fair-to-good condition, and both sit in FEMA Flood Zone X, outside the 0.2% annual-chance floodplain. Day-to-day management is handled by established firms Spectrum Properties (Charlotte) and JLL (West Columbia).
A defining feature of this offering is that it carries no debt. Both operating trusts own their properties in fee simple, and neither property is encumbered by any permanent financing - the loan-to-value ratio is 0%. Investors therefore assume no mortgage, no lender covenants, and no balloon-maturity or refinancing risk, and they are not required to qualify for or assume a share of any loan, which can simplify a Section 1031 exchange that would otherwise need replacement debt. The maximum offering is $97,634,409 of equity, representing 100% of the Parent Trust's Class 1 interests, against a combined appraised property value of $90.8 million subject to the master lease; the difference reflects a mark-up of up to 7.0% of the offering used to pay sales commissions (up to 5.0%), the dealer-manager fee (up to 1.0%), and organization/offering and other closing-cost reimbursements (0.5% each). The minimum investment is $250,000, a 0.26% interest. Because the structure is unleveraged, current income depends on property cash flow and the master tenant rather than on leverage-amplified returns, trading yield potential for balance-sheet safety.
The offering is sponsored by Invesco Real Estate Exchange LLC and managed by Invesco DST Manager LLC, both affiliated with Invesco Real Estate (IRE), the real estate arm of global investment manager Invesco Ltd. Invesco managed approximately $2.2 trillion in assets under management as of December 31, 2025, and IRE - one of the largest real estate investment managers in the world - held $84.2 billion in real estate AUM as of September 30, 2025. Established in 1983, IRE operates across 21 offices in 16 countries with more than 600 employees worldwide. The DST program runs on the sponsor's INREIT platform (Invesco Real Estate Income Trust Inc.), a REIT whose Operating Partnership guarantees the master tenant's obligations and files public reports with the SEC (Forms 10-K, 10-Q and 8-K), giving investors an unusual degree of transparency into the affiliated guarantor's financial condition. Invesco Distributors, Inc. serves as dealer manager, and the underlying properties are operated by established third-party managers Spectrum Properties Management Company and Jones Lang LaSalle (JLL).
The Interests are designed as replacement property for investors completing a Section 1031 like-kind exchange, and may also serve Section 1033 conversions. Tax counsel Baker & McKenzie LLP has provided an opinion that each trust should be treated as an investment (grantor) trust and that a purchaser should be treated as acquiring a direct, undivided fractional interest in the real estate for Section 1031 purposes, that the Interests should not be treated as securities, and that the 20-year master lease should be treated as a true lease. Investors gain potential depreciation and the deferral of capital gains, with distributions of available cash paid at least quarterly. The offering also grants the Operating Partnership a fair-market-value (FMV) option: beginning after all investors have held their Interests for at least two years, the Operating Partnership may - at its discretion, not obligation - acquire the Interests for cash or Operating Partnership units at appraised fair market value without discount, a potential UPREIT-style (Section 721) exit into a larger Invesco REIT vehicle. No IRS private letter ruling has been obtained, and the tax opinion is limited in scope.
Analysis of IREX V Diversified Portfolio DST
Insights
Strip away the "Diversified Portfolio" label and IREX V is a capital-preservation instrument, not a growth play: an all-cash claim on two new Carolina buildings, but the income runs through a 20-year net master lease guaranteed by Invesco's INREIT Operating Partnership - you underwrite a guarantor's credit as much as bricks. The 0% LTV is the signature: no lender or balloon risk, but no leverage to manufacture yield, so the coupon is modest. On price it sits mid-market - the ~4.5% starting distribution and 4.82% average land on the diversified benchmark, income, peak and growth all screening "Meets Average," fair rather than cheap. The 7.0% load is moderate but real, and the $97.6M offering sits above the $90.8M appraised value: you buy Invesco's platform and the guaranty, not discounted property. The payout is covered - Year-1 distributions run about 1.4x in-place NOI, so this is earned income, not a return of capital. The crux is that guaranty: since income and downside both route through the INREIT Operating Partnership, read INREIT's public SEC filings like a bond indenture - leverage, NAV trend, and the redemption queue, since a strained non-traded REIT is when its guaranty gets tested. Watch rollover too: at Gateway One, losing L&L Products empties a third of the building. What the brochure buries is the exit: the FMV option is sold as upside, but after two years it lets the Operating Partnership, at its sole discretion, move investors out of a hard-asset DST into units of Invesco's own perpetual-life REIT - less a liquidity promise than a funnel into INREIT. Own it if you are a conservative exchanger who prizes capital preservation, sponsor pedigree and a possible 721 UPREIT path over income and can hold indefinitely; pass if you want yield, leverage-driven upside, a defined liquidity date, or must replace mortgage boot, which a zero-debt DST cannot do alone.
Advantages
- Institutional sponsorship: Invesco Real Estate (about $84.2 billion in real estate AUM, part of a roughly $2.2 trillion global manager) provides acquisition, management and reporting infrastructure, and an affiliated public REIT (INREIT) guarantees the master tenant through its Operating Partnership. - No leverage: both properties are owned free and clear at 0% LTV, eliminating mortgage, refinancing and balloon-maturity risk and easing the debt-replacement requirement of a 1031 exchange. - Newly built, well-occupied assets: the 2022 Charlotte mixed-use building (95.3% leased, 19 tenants) and the 2023 West Columbia industrial facility (100% leased, four tenants) are modern and diversified across two complementary property types. - Two-property, multi-tenant diversification: exposure to defensive industrial/logistics demand plus repriced office and recovering retail, across two Carolina markets, spreads single-tenant and single-asset risk more than a typical single-property DST. - Strong markets: Charlotte (about 2.9 million residents, a top U.S. banking center) and Columbia (state capital, university and logistics hub) offer diverse demand drivers with interstate, airport and rail access. - 1031 eligibility supported by a favorable tax opinion, potential depreciation shelter, and at-least-quarterly distributions of available cash. - Built-in exit optionality: the FMV option offers a potential path to convert into Operating Partnership units (an UPREIT/721-style outcome) or cash at undiscounted appraised value after a two-year hold. - Passive ownership: a 20-year net master lease and professional third-party managers (Spectrum, JLL) remove day-to-day landlord duties, at a $250,000 minimum entry.
Concerns
- Illiquidity: the Interests are unregistered, have no public market, and are subject to transfer restrictions; investors must be prepared to hold for an indefinite period and to bear a total loss of capital. - No control: as a DST, beneficial owners have no voting rights over management or the timing of a sale; the Manager (an Invesco affiliate) alone decides when to sell and cannot raise new capital or renegotiate leases without risking a 'springing LLC' conversion that may carry adverse tax consequences. - Immediate dilution and load: the $97,634,409 offering price exceeds the $90.8 million appraised value; a mark-up of up to 7.0% (commissions, dealer-manager fee and expense reimbursements) plus ongoing management (0.15%) and investor-servicing (0.25%) fees and a disposition fee (up to 1.0%) mean investors may recover less than invested capital on a sale. - Concentration: only two properties in two adjacent states (North and South Carolina) and two asset classes (industrial and mixed-use office/retail) - not a fully diversified investment, and the office/retail component carries sector headwinds. - Reliance on the master tenant and guaranty: distributions depend on the master tenant's performance and the affiliated Operating Partnership guarantor's financial strength, and conflicts of interest exist among the Sponsor, Manager, Master Tenant and their affiliates. - Tax risk: no IRS private letter ruling; 1031 treatment rests on a limited tax opinion, and use of exchange funds for acquisition costs could create taxable boot. - Market, tenant and property risk: a hurricane-susceptible region and (for Gateway One) moderate seismicity; the Elizabeth on Seventh site has a documented environmental history (former underground storage tanks, residual petroleum-impacted soil and groundwater); PCAs recommend roughly $144,000 and $494,500 of ten-year capital reserves, and no Supplemental Trust Reserve is currently established. - Best-efforts offering with no minimum contingency, and no stated or guaranteed distribution rate (projections appear only in the Exhibit C financial forecast).
IREX V Diversified Portfolio DST — Complete Offering Data
Offering & Structure
Investment NameIREX V Diversified Portfolio DST
SponsorInvesco
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusLimited Availability
Last Updated2026-08-03
Size & Availability
Total Offering$97,634,409
Equity$97,634,409
DebtAll-Cash
Available Equity$5,000,000 (5.1% of equity)
Minimum Investment$250,000
Total Load7.00%
Initial Reserves0.00%
Property
Property TypeDiversified
StrategyCore
LocationNC, SC
Market TierTier 3
Income & Projections
Average Yield4.82%
Projected Yields (Y1–Y10)Y1 4.50% · Y2 4.50% · Y3 4.50% · Y4 4.49% · Y5 4.49% · Y6 5.15% · Y7 5.15% · Y8 5.15% · Y9 5.15% · Y10 5.15%
Tax-Adjusted Yield11.34%
Cap Rate Equivalent7.09%
Year 1 NOI$6,161,032
Y1 Payout Ratio1.4
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period2 years
721 Exchange ExitMandatory
Benchmarks (vs sector median)
Avg. Income4.82% vs 4.82% market — Meets Average
Growth14.44% vs 14.44% market — Meets Average
Peak5.15% vs 5.15% 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.
