DST Offering Detail

Bluerock Harrison Trace DST

Bluerock Harrison Trace DST

DST Offering Highlights

Bluerock Harrison Trace DST consists of an 84-unit single-family rental community located in Charlotte, North Carolina – 15 minutes north of Charlotte’s downtown core. Completed in 2022, the maintenance-free homes combine for over 145,000 rentable square feet. The individual residences include a diverse combination of 3-, 4- and 5-bedroom homes ranging on average from 1,360 to 2,368 sq. ft. Charlotte is the 22nd largest MSA in the United States with an estimated population exceeding 2.7 million residents. The MSA is currently one of the fastest-growing metropolitan areas among major U.S. cities and is expected to experience a population increase of 2% annually over the next five years. The DST’s business plan is to implement an aggressive marketing campaign and digital revenue management program to maintain high occupancy levels through a nationally recognized third-party property management company.
Property Status: Closed Offering
Property Type: Multi-Family
Property State:  North Carolina
Property City:  Charlotte
Properties: 1
Units:  84
Offering Size: $48,182,163
Equity Offering:  $48,182,163
Loan-to-Value: N/A
Loan Terms:  No Debt
Cash Flow: Call to Confirm

About Bluerock Value Exchange

Bluerock Value Exchange is a national sponsor of syndicated 1031 exchange offerings with a focus on Class A assets that can deliver stable cash flows and have the potential for value creation. Bluerock’s senior management team has an average of over 29 years of investing experience and has helped launch leading real estate private and public company platforms.

Benefits of a Delaware Statutory Trust

Delaware Statutory Trusts are a popular 1031 Exchange replacement property option that allows for fractional ownership of high-quality institutional properties acquired by and managed by large real estate firms, referred to as DST sponsors.  DSTs provide a unique and flexible solution to investment property owners who want to defer tax and continue to own investment property without the management requirements of directly owned property. Below are some of the benefits of investing in DST real estate.

  • Tax Savings: DSTs allow for the deferral of federal capital gains tax, state capital gains tax, net investment income tax, and depreciation recapture tax. The tax savings can be significant, especially in states where the potential tax liability can be as high as 42%.
  • Monthly Income Potential: DSTs are structured with an emphasis on cash flow for investors and typically include high-quality institutional property.
  • Eliminate Active Property Management: Ownership of a DST is entirely management free.
  • Eliminate Tax for Estate Beneficiaries: DSTs allow for a “step-up in basis” upon the passing of an owner (elimination of Capital Gains, Depreciation Recapture, and Net Investment Income Tax).
  • Low-Cost Non-Recourse Debt Matching: Most investors have debt that must be matched in their exchange, therefor many DSTs are structured with debt in place.
  • Low Risk of a Failed 1031 Exchange: Extensive DST property due diligence is prepared in advance and DST closings can occur quickly – in a matter of days.

DST Risks

DSTs offer many benefits however they are not suitable for everyone and come with risks. Therefore, DSTs are only available to accredited investors. Before deciding to invest in DST real estate, carefully consider the following considerations: Lack of liquidity, timing of exit, lack of control, and interest rates can affect financing, leasing, and appreciation. Additionally, loan modifications may not always be possible, cash flow is not guaranteed, and projected appreciation may not occur. There are also management costs and fees associated with owning DSTs which are disclosed in the prospectus. While not a precisely defined term, a high grade, institutional-grade, or institutional-quality property generally refers to a property of sufficient size and stature to merit attention from large national or international investors.