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Invesco Real Estate Income Trust’s IREX V Diversified Portfolio Delaware statutory trust offering is fully subscribed at $97.6M, the nonlisted REIT announced. The offering launched in April.
IREX V features one mixed-use office and retail property and one industrial property in North Carolina and South Carolina. The assets span roughly 353K SF and are 98.7% occupied. They were sourced by Invesco REIT.
“As more property owners look to step away from the day-to-day demands of active management without giving up their real estate exposure, we continue to see strong interest in solutions that pair the tax-deferral potential of a 1031 exchange with professionally managed, diversified portfolios,” Invesco Real Estate Director, Private Markets and 1031 Exchange Program Kyle Connor said in a press release.
It isn’t just Invesco seeing the strong interest in DSTs. Sales of the investment type totaled nearly $8.4B through October, a 26% increase from the less than $6.7B raised through the same period in 2025, according to data from Mountain Dell Consulting.
In October alone, DST sales totaled roughly $918.5M, an approximately 9.6% increase from September’s $838.3M. Industrial and multifamily are the most widely offered asset types, representing 34% and 31% of all syndicated offerings, AltsWire reported.
Big-name institutional investors including Ares, Hines and Blackstone are creating DSTs, a more than 20-year-old investment vehicle that has gained popularity this year as older investors seek passive investment opportunities.
The investment vehicle is a securitized form of a 1031 exchange, which allows property owners to avoid paying taxes when selling an asset if they invest their gains in another deal within a certain time frame. DSTs allow individuals to own fractional interests in commercial real estate assets while remaining hands-off, as fund managers take care of the assets.
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