Blackstone Completes First DST Offering With 612-Unit Sunbelt Multifamily Portfolio

Blackstone Real Estate has fully subscribed its first Delaware Statutory Trust (DST) offering, the firm announced September 21, placing two Class A Sunbelt apartment communities totaling 612 units with investors seeking to defer capital gains taxes through a Section 1031 exchange.

The offering, designated BXREX Portfolio I, is the inaugural transaction under Blackstone's Real Estate Exchange program, known as BXREX. The program launched in November 2025 and is designed to give owners of appreciated investment real estate a fractional interest in institutional-quality assets while preserving eligibility for a 1031 exchange.

"We are thrilled to have fully subscribed our first DST offering and to help our investors achieve their 1031 goals," said Katie Keenan, Global Head of Blackstone's Core+ Real Estate business and Chief Executive Officer of BREIT. "The Blackstone Real Estate Exchange program is backed by the full resources of Blackstone's real estate platform, and we believe we are uniquely positioned for this space."

Portfolio Properties

The portfolio comprises two properties previously held by Blackstone Real Estate Income Trust, Inc. (BREIT)-affiliated entities and contributed into the DST structure. The first, Vue at Centennial, is located at 7350 West Centennial Parkway in Las Vegas, Nevada, and contains 372 units. The second, Avenues at Cypress, is situated at 21500 Cypresswood Drive in Cypress, Texas, and contains 240 units. Avenues at Cypress was built in 2014 and renovated in 2023.

The combined indicated property value for the two assets is approximately $166.96 million, or roughly $272,800 per unit. Vue at Centennial carries an allocated purchase price of approximately $113.51 million, or about $305,145 per unit. Avenues at Cypress is allocated approximately $53.44 million, or about $222,672 per unit. These figures reflect allocated purchase prices reported in sponsor materials rather than arm's-length sale prices.

How the DST Structure Works

A DST allows owners of appreciated investment real estate to acquire a fractional beneficial interest in a trust holding real property, rather than directly purchasing and operating an asset. That structure can satisfy the replacement-property requirement of a Section 1031 exchange, enabling investors to defer capital gains taxes on the sale of prior holdings. Interests in the BXREX program are offered to accredited investors through private placements exempt from Securities Act registration.

The structure gives Blackstone an additional channel for monetizing stabilized assets within BREIT's portfolio. Rather than relying solely on conventional whole-property sales or institutional portfolio transactions, the DST program creates a separate buyer base among high-net-worth investors and financial advisers working within the 1031 exchange timetable. BREIT is a perpetual-life vehicle whose private-market assets are not continuously liquid, and the DST program provides a capital-recycling mechanism for selected stabilized properties.

BREIT and Blackstone Platform Context

The assets were identified by BREIT, which holds a portfolio of more than $120 billion in institutional-quality real estate concentrated in data centers, industrial properties and rental housing. The broader Blackstone real estate business, founded in 1991, reports approximately $314 billion in investor capital under management, making it one of the largest owners of commercial real estate globally.

Blackstone's Core+ business, which Keenan leads, invests in substantially stabilized real estate assets and operates through both institutional strategies and vehicles tailored for individual investors, including BREIT. The BXREX program sits within that Core+ framework, extending the platform's reach into the 1031 exchange market.

Market Context and Program Outlook

The Sunbelt multifamily market has experienced elevated new supply and pressure on occupancy and effective rents in recent years. A stabilized, recently renovated Class A portfolio represents a different risk profile than development or value-add acquisitions, which may appeal to 1031 investors seeking replacement properties with existing income streams.

The $166.96 million portfolio is modest relative to BREIT's overall holdings, but the program appears intended to expand. A subsequent BXREX offering has been described in trade coverage as involving two industrial properties in New Jersey and Pennsylvania, suggesting the program may extend beyond multifamily assets.

Blackstone's ability to source DST assets from its existing large portfolio, rather than assembling each offering through separate third-party acquisitions, is a structural differentiator in the institutional DST market, where sponsors compete on asset quality, tax and legal execution, intermediary distribution and replacement-property access.

The firm's announcement expressly states that it does not constitute an offer of securities or investment advice.

Sources

Blackstone Real Estate — BXREX: Blackstone Completes First DST Offering (September 21, 2026)