Dave Bulger
Vice President
O (855) 378-3443|C (561) 715-3235
18 Formero Street, Rancho Mission Viejo, CA 92694
Investment underwriting report
Complete offering, sponsor, fee and comparative analysis
Prepared
August 26, 2026
Offering summary
BREX Net Lease Data Center I DST is a Delaware Statutory Trust offering sponsored by Brookfield Real Estate Exchange LLC. The offering encompasses a data center asset located in Sunnyvale, California, with an acquisition price of $90,250,000 and a total offering price of $97,979,841. The sponsor is raising $58,979,841 in offering equity alongside debt financing reflecting an offering LTV of 39.8%. The property was appraised by Cushman & Wakefield at $91.4 million as of April 30, 2026, representing an appraisal-to-offering ratio of 93.24%. Financing features a variable interest rate of 5.25% with an initial 2-year term maturing May 9, 2028, and up to three automatic one-year extensions for an ultimate 5-year term. Projected investor cash distributions begin at 4.37% in Year 1 with a full-term average income projection of 5%.
0.0% of the offering is closed
$58,979,841 still available
$58,979,841
$0
0.0% of offering$0
Pending subscription$58,979,841
Open for subscriptionThe sponsor is raising $58,979,841 in equity from Class 1 Beneficial Interests across 4 DST structures. Total front-end offering fees and expenses stand at $4,423,488, which include selling commissions of up to 5.0%, a placement agent fee of $589,798, a dealer fee of $589,798, and an organization and offering expense reimbursement of $1,000,000.
Sector
Data center
Investment Category
DST
Projected First Year Cashflow
4.37%
Avg. 5% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$97,979,841
Offering Debt
—
All-equity offering
LTV
—
On acquisition price
Units / Tenants
—
Sunnyvale, California
Property Age
The Property includes two 20,000-gallon diesel underground storage tanks that were installed on August 1, 2000.
The offering covers a data center property in Sunnyvale, California, acquired for $90,250,000 against an appraised value of $91.4 million. The capital structure consists of $58,979,841 in equity and debt leverage at an offering LTV of 39.8%. Projected returns include a Year 1 income distribution of 4.37% and an average full-term income of 5%.
Institutional Sponsor Scale
$1,000,000,000,000 AUMBrookfield platform brings significant global scale and asset management capabilities.
Moderate Leverage
39.8% LTVConservative debt profile provides an equity cushion against asset valuation fluctuations.
Prime Tech Market Location
Sunnyvale, CAData center asset is located in a core Silicon Valley infrastructure market.
Offering Price Premium
93.24% Appraisal/OfferingOffering price of $97,979,841 exceeds the $91.4 million appraised value due to upfront load and fees.
Variable Rate Financing
5.25% Variable RateLoan is subject to variable interest rate risk with an initial 2-year term maturing May 9, 2028.
Underground Tank Vintage
Installed August 1, 2000Facility utilizes two 20,000-gallon diesel storage tanks that are over 23 years old.
The offering benefits from the backing of Brookfield Real Estate Exchange LLC, an affiliate of an institutional sponsor managing $1,000,000,000,000 in assets under management. Leverage is conservative with an offering LTV of 39.8%. In addition, the property is located in the prime Sunnyvale, California data center market with an independent appraised value of $91.4 million.
Offering Equity
60.2% of offering
Acquisition Cost
95.5% of offering
Offering Expenses
4.5% of offering
Reserves
0.5% of offering
Total Offering
$97.98M
All equity — no mortgage debt
Acquisition Cost
$93.56M
95.5% of offering to the property
Total Fees & Expenses
$4.42M
5.00% of offering
Reserves
$447K
0.5% of offering
Sources comprise $58,979,841 in offering equity and debt proceeds to cover the total acquisition cost of $93,556,353. Uses include the $90,250,000 acquisition price, $4,423,488 in total offering and front-end expenses, $2,711,454 in financing expenses, $294,899 in title and recording costs, and funded reserves including $300,000 for improvements and $147,450 for the master tenant.
Tone reflects relative strength, not a rating
Interest Rate Structure
Variable rate debt with initial 2-year maturityThe 5.25% variable rate loan matures initially in May 2028, requiring satisfaction of extension conditions for the 5-year full term.
Appraisal Load
Offering price exceeds appraisalThe $97,979,841 offering price represents a 93.24% appraisal-to-offering ratio against the $91.4 million valuation.
Leverage Profile
Conservative 39.8% LTVLow leverage of 39.8% mitigates default risk and structural refinancing pressures.
Environmental / Asset Age
August 2000 tank installationsTwo 20,000-gallon diesel underground storage tanks date back to August 1, 2000.
The debt facility carries a variable interest rate with an initial 2-year maturity, presenting interest rate variability and extension risk. Additionally, the offering price of $97,979,841 exceeds the appraised value of $91.4 million by 7.25% (93.24% appraisal-to-offering ratio). Infrastructure age considerations include two 20,000-gallon diesel underground storage tanks installed in August 2000.
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load
5.00%
Total fees ÷ offering price (all-equity offering)
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
108.6%
Offering price ÷ acquisition price
Price per Unit
—
Offering price ÷ — units
Distribution rates as extracted from the offering materials.
The total offering price of $97,979,841 reflects an acquisition cost of $90,250,000 and total front-end and offering expenses of $4,423,488. The Cushman & Wakefield appraisal of $91.4 million results in an appraisal-to-offering ratio of 93.24% and a 5% load on the offering price. Debt capitalization reflects an offering LTV of 39.8% with an initial interest rate of 5.25%.
Sponsor
Brookfield Real Estate Exchange LLC is an institutional sponsor affiliated with Brookfield's $1,000,000,000,000 global asset management enterprise. Operational management is conducted through the Adviser without direct REIT employees.
• Portfolio offerings may include two or more Trusts or multiple Properties held by a single Trust, and purchasers in such multi-property portfolio offerings receive equal participation across all Trusts or Properties in the portfolio rather than selectively investing in individual Trusts or Properties.
Properties owned or managed
$1,000,000,000,000
Across all programs
4
Prior DST offerings
—
DST-held assets
BF REIT itself has no employees, as all of its operations are managed and its executive officers are employed and compensated by the Adviser.
Disclosed headcount
data center
Stated strategy
Brookfield Real Estate Exchange LLC is an institutional real estate sponsor operating within Brookfield's broader platform, which oversees $1,000,000,000,000 in assets under management. The sponsor manages operations through its adviser structure, as the underlying REIT entity has no direct employees. The sponsor has extensive track record across prior programs, though operating results of this specific trust are structured separately.
Global platform with $1,000,000,000,000 in assets under management
Extensive institutional track record across commercial real estate sectors
Institutional grade reporting and advisory infrastructure
BF REIT has no direct employees and relies entirely on the external Adviser
Historical program results are not directly comparable to current trust operations
The property
$90,250,000 acquisition price
BREX Net Lease Data Center I DST
Data Center
The Property includes two 20,000-gallon diesel underground storage tanks that were installed on August 1, 2000.
Sunnyvale, California
Sunnyvale, California
$90,250,000
100.0% of portfolio
The offering carries a $29,637,800 first mortgage against the Dallas multifamily asset, representing 64.2% leverage on the acquisition price. The loan is fixed at 5.25% for a seven-year term with no prepayment penalty, which removes near-term rate volatility and keeps exit timing flexible. Projected net operating income covers debt service at 1.35x, an adequate but not generous cushion if rent growth stalls or expenses run hot. Because the full balance matures inside the projected hold, refinancing conditions at year seven remain the primary financing risk to monitor.
All-cash offering — no mortgage debt, so there is no leverage to chart.
—
Initial 2-year term maturing May 9, 2028, with three automatic one-year extensions, subject to certain terms and conditions of the Loan remaining satisfied, providing an ultimate 5-year term maturing on the Maturity Date.
5.25%
Variable
May prepay the Loan in full, but not in part, on any business day upon the conditions stated in the Loan Documents, including giving the Lender not less than ten business days prior written notice
—
—
39.8%
Transaction fields tie the $50.0M acquisition price to the $60.0M offering price and the $61.50M appraisal, so the pricing gap is visible rather than implied. The offering prices 20.0% above acquisition cost and reads a -2.44% premium/discount to appraised value. Cap rates compress from 5.25% at acquisition to 5.75% syndicated, a 50 bps spread absorbed by fees and load. Load figures of 4.30% on equity and 2.40% on offering price are the fields most worth pressure-testing.
$90,250,000
$97,979,841
The Sponsor obtained an appraisal from Cushman & Wakefield reflecting a market value of the Property of $91.4 million as of April 30, 2026.
—
—
5%
—
—
—
93.24%
—
Use of proceeds shows where investor capital actually lands: $46.36M, or 77.3% of the offering, reaches the property. Offering expenses of $7.80M and acquisition costs and reserves of $5.84M consume the remaining 22.7%. Total fees and expenses of $13.64M equal 21.13% of equity and 12.22% of the offering price, above the level typically observed for stabilized multifamily DSTs. Reserves of $3.88M are appropriately sized for a 12-year-old asset.
Total Fees & Expenses
$4,423,488
% of offering
5.00%
All-equity offering — load on equity equals load on offering price.
Total fees & expenses
$4.42M
5.00% of offering
Offering expenses
$4.42M
4.51% of offering
Reserves held
$447K
0.46% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $294,899 | 0.50% | 0.30% |
| Reserves (Loan Proceeds) | $300,000 | 0.51% | 0.31% |
| Reserves (Master Tenant) | $147,450 | 0.25% | 0.15% |
| Reserves (Improvements) | $300,000 | 0.51% | 0.31% |
| Finance Expenses | $2,711,454 | 4.60% | 2.77% |
| Total Acquisition Cost | $93,556,353 | 158.62% | 95.49% |
| Total Acq. Cost (Reserves) | $93,556,353 | 158.62% | 95.49% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $2,948,992 | 5.00% | 3.01% |
| Dealer Fee | $589,798 | 1.00% | 0.60% |
| Placement Agent Fee | $589,798 | 1.00% | 0.60% |
| O&O Expenses | $294,899 | 0.50% | 0.30% |
| Total Offering Expenses | $4,423,488 | 7.50% | 4.51% |
Front-end sponsor compensation totals $5,094,395, or 10.19% of acquisition cost, spread across five disclosed line items. The $1.96M acquisition fee is the largest single component at 3.04% of equity, followed by $1.24M of carrying costs. O/O reimbursement, DST admin and loan origination fees add a further $1.90M. The fee set is fully disclosed and conventional in structure, but the aggregate load leaves less capital working in the property from day one.
$1,000,000
1.70%
$589,798
1.00%
$4,423,488
4.90%
Ongoing fees are charged against six different bases, so headline rates are not directly comparable to one another. The 3.00% property management fee on EGI and 1.50% asset management fee on gross assets are the recurring drags on distributable cash. Master tenant income of 2.00% of annual rent sits on top of those, and a 1.00% disposition fee plus 1.00% refinancing fee apply at capital events. Trust administration is a modest $25,000 flat annual cost.
0.15%
$4,950
0.15%
Standing
22 of 57
Blended percentile across 11 extracted metrics.
Pricing
32nd pct
Leverage
37th pct
Cost
62nd pct
Ongoing
79th pct
Structure
70th pct
Pricing
Leverage
Cost
Ongoing
Structure
Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.
Year 1 distribution
21st pct4.37%median 4.60%
Interest rate
38th pct5.25%median 5.11%
Total upfront load
83rd pct4.51%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Year 1 distributionPricing | 4.37% | 4.60% | 4.40% – 5.00% | −0.23% | 21st |
| Avg. distribution (term)Pricing | 5.00% | 5.08% | 4.75% – 5.32% | −0.08% | 42nd |
| Offering LTVLeverage | 39.80% | 46.17% | 2.67% – 49.80% | −6.37% | 67th |
| Interest rateLeverage | 5.25% | 5.11% | 5.00% – 5.48% | +0.14% | 38th |
| Loan termLeverage | 2 yrs | 10 yrs | 9.5 yrs – 10.5 yrs | −8 yrs | 6th |
| Total upfront loadCost | 4.51% | 7.50% | 5.00% – 9.50% | −2.98% | 83rd |
| Selling commissionCost | 3.01% | 6.00% | 5.00% – 6.00% | −2.99% | 91st |
| ReservesCost | 0.76% | 5.54% | 1.76% – 9.03% | −4.78% | 11th |
| Asset management feeOngoing | 0.15% | 0.35% | 0.20% – 0.47% | −0.20% | 79th |
| Equity share of capitalStructure | 60.20% | 100.00% | 52.74% – 100.00% | −39.80% | 46th |
| Hold periodStructure | 2 yrs | 10 yrs | 9.5 yrs – 10.5 yrs | −8 yrs | 94th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| MDRR XXV Tesla DST 1 | MDRR Sponsor TRS, LLC | 6.00% | 47.32% | 2.32x | 3.69% | 5 yrs | 89% |
| BREX Briggs MF DST | Brookfield Real Estate Exchange LLC | — | — | — | 3.72% | — | 89% |
| NexPoint Small Bay III DST | NexPoint Real Estate Advisors IV, L.P. | 5.50% | 44.90% | — | 5.15% | — | 88% |
| NexPoint Life Sciences III DST | NexPoint Real Estate Advisors IV, L.P. | 5.83% | 50.52% | 1.03x | 4.63% | 9 yrs | 87% |
| NexPoint Oasis DST | NexPoint Real Estate Advisors IV, L.P. | 4.84% | 53.05% | 1.81x | 4.39% | 10 yrs | 85% |
| NewStar 17 Sweetwater Springs DST | Newstar Exchange | 4.76% | 45.00% | 2.53x | 5.67% | 10 yrs | 85% |
| CF Biscayne Multifamily DST | Cantor Fitzgerald Investors, LLC | — | 52.30% | — | 3.90% | — | 84% |
| 307 Stockton Fee DST | Mercer Street | 4.61% | 50.00% | 2.10x | 5.00% | 1 yrs | 83% |
Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.
Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.