NLC Financial Service HQ is a Zero Cash Flow DST owning the Huntington Tower, a 2023-built, 20-story Class A office headquarters in downtown Detroit, 100% leased to The Huntington National Bank under a 22.5-year absolute-NNN lease expiring June 2044 with 2.00% annual escalations, guaranteed by Huntington Bancshares (BBB+). By design, 100% of lease rent services mortgage debt, so no current distributions are paid; investor return accrues through amortization-driven equity buildup, 1031 tax-deferral, and appreciation at disposition. The $137.69M transaction (79.30% share) comprises $23.75M equity and $113.94M assumed non-recourse debt (82.75% LTV) across senior and subordinated notes all maturing coterminous with the lease.
, Detroit, Michigan (downtown Wayne County). 00% annual escalations and four seven-year renewal options; the lease is guaranteed by Huntington Bancshares Incorporated (S&P BBB+, Fitch A-, Morningstar A). The structure is zero cash flow: 100% of lease rent is applied to mortgage debt service, so no current distributions are paid to Holders during the term—investor return is generated through mortgage amortization and equity buildup, Section 1031 tax-deferral status, and capital appreciation realized upon eventual disposition.
756%, all maturing June 10, 2044 coterminous with the lease. 6 million, framing the equity-buildup thesis. Sponsor: Net Lease Capital Advisors LLC.
| Lender | Wells Fargo Trust Company, N.A. |
| Interest Rate | 4.589% (Fixed) |
| Loan Term | 18 years |
| Amortization | Senior amortizes; B-notes accrue |
| Total Debt | $113.9M ($113,940,598) |
| In-Place LTV | 82.75% |
| Year 1 DSCR | 1.00x |
The Property is 100% leased to The Huntington National Bank under a 22.5-year absolute triple-net lease running to June 2044 and guaranteed by Huntington Bancshares Incorporated, an investment-grade institution (S&P BBB+, Fitch A-, Morningstar A) with $210.2 billion in assets and $2.08 billion of net income; the absolute-NNN structure places all operating, maintenance, and capital obligations on the tenant, and the lease term is coterminous with the debt, eliminating rollover and re-leasing risk during the financing.
As a zero cash flow structure, 100% of rent services the mortgage and no current distributions are paid; the investor return is engineered through forced mortgage amortization that builds equity over the hold, with the Appraisal projecting a terminal property value of approximately $240,000,000 at the June 2044 lease expiry against a total balloon of roughly $67.6 million, the spread representing the targeted equity accretion plus appreciation.
The offering is designed for Section 1031 exchange investors seeking to replace both equity and a large allocation of debt; the 82.75% non-recourse leverage allows a relatively small equity outlay to satisfy substantial replacement-debt requirements, and the absence of current cash flow paired with depreciation can shelter income, positioning the structure as a debt-replacement and tax-deferral vehicle rather than an income vehicle.
The 2023-vintage, build-to-suit headquarters anchors Huntington's regional presence in downtown Detroit on Woodward Avenue, with mission-critical single-tenant occupancy spanning a ground-floor bank branch, structured parking, and office floors that supports tenant commitment; recent construction limits near-term capital needs, which are in any event the tenant's obligation under the absolute-NNN lease.
The $131.9 million current-balance senior note carries a 4.589% fixed coupon and amortizes to a modest $7.1 million balloon at June 2044, while the subordinated notes accrue rather than requiring current payment; all debt is non-recourse to Holders, and the matched lease-and-loan maturities align the credit, the amortization schedule, and the disposition at a single 2044 horizon.
The offering provides investment-grade single-tenant credit exposure—The Huntington National Bank, guaranteed by Huntington Bancshares (S&P BBB+, Fitch A-)—under a 22.5-year absolute triple-net lease coterminous with the debt to June 2044, eliminating operating, capital, and rollover risk during the hold. The zero cash flow structure offers Section 1031 investors a debt-replacement vehicle that satisfies large mortgage-replacement requirements with a modest 17.25% equity outlay, while forced senior amortization builds equity against a projected $240,000,000 terminal value. The recent 2023 build-to-suit construction, downtown Detroit Woodward Avenue location, fixed 4.589% senior coupon, non-recourse debt, and 2.00% annual rent escalations are structurally favorable, and the matched lease-and-loan maturities concentrate execution at a single, well-defined horizon.
The structure pays no current cash flow, so Holders receive no distributions during a roughly 18-year hold and depend entirely on mortgage amortization, tax deferral, and a single disposition or refinancing event in June 2044, an illiquid and back-end-loaded return profile. Leverage is high at 82.75%, and while the senior note amortizes, two subordinated notes at 7.870% and 10.756% accrue to balloon balances of $33,000,000 and $27,500,000 that, with the senior balloon, total $67,575,742 due at the 2044 maturity—a substantial refinance-or-sell obligation whose satisfaction depends on the Property re-leasing or selling at then-prevailing rates and on Huntington renewing. The asset is a single-tenant Class A office tower in downtown Detroit, a market with structural office-demand and liquidity challenges, concentrating value in one credit, one building, and one secondary office market amid secular office weakness. The equity-buildup thesis rests on an Appraisal-projected $240,000,000 terminal value that is not guaranteed and depends on renewal (each extension at 95% of fair market rent) or a market sale. The uses of proceeds embed an unusually large Affiliate Equity Financing Cost of $5,258,239 (22.14% of cash proceeds) plus selling and offering load of $1,985,290 (8.36%), elevating the effective basis, and only 79.30% of the Trust is offered, with 20.70% held by third parties.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
The risk-adjusted profile is fundamentally different from an income-oriented DST: this is a high-leverage, zero cash flow, investment-grade credit-lease vehicle whose return is engineered through forced amortization and 1031 tax deferral rather than current yield, and it should be evaluated as a debt-replacement and tax-deferral instrument, not a cash-flowing real estate investment. The principal strengths are the investment-grade Huntington and Huntington Bancshares credit, the long absolute-NNN lease coterminous with the debt, the amortizing fixed-rate senior note, and recent build-to-suit construction—collectively a low-default-probability, cash-flow-matched position. The principal risks are concentrated and back-loaded: a single Detroit office asset in a secularly weak office sector, total balloon obligations of $67.6 million converging with the lease expiry in 2044, accrual subordinated notes at 7.870% and 10.756% that compound the back-end obligation, a terminal-value thesis dependent on renewal or sale at uncertain future rates, and an embedded affiliate financing cost that raises the effective basis. The vehicle suits a 1031 exchanger prioritizing debt replacement and tax deferral over current income and able to bear an illiquid, roughly 18-year hold concentrated in a single 2044 outcome event.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
Net Lease Capital Advisors
Net Lease Capital Advisors is a Nashua, New Hampshire net-lease advisory and sponsorship firm, founded in 1996, with a distinctive specialization in single-tenant assets leased to the U.S. Government (GSA) and investment-grade corporates, and particular expertise in zero-cash-flow structures for 1031 exchangers. The firm cites more than $15 billion in closed net-lease transactions since inception—a lifetime volume figure rather than current AUM—and pairs property sponsorship with capital-gains tax structuring. Its government-credit niche is among the most defensive tenant profiles available to exchange investors.
Learn More About Net Lease Capital Advisors →Documents for this offering. Available to signed-in investors.
Securities offered through Aurora Securities, Inc. (CRD #46147 / SEC #8-51322), member FINRA / SIPC; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc. and is not a registered broker-dealer or investment adviser. This is not an offer to sell or a solicitation of an offer to buy any security; any offer is made solely by the confidential private placement memorandum (PPM), which qualifies all information herein in its entirety. Delaware Statutory Trust interests are speculative, illiquid securities offered under Rule 506(c) of Regulation D and sold only to investors whose accredited-investor status has been verified; offering documents and subscription materials are provided only after that verification. They involve substantial risk, including possible loss of the entire investment.
Distributions, yields, the cap-rate equivalent, DSCR, occupancy, and benchmark figures are sponsor estimates or projections, are not guaranteed, and may differ materially from actual results. Any tax-adjusted yield assumes a 40% effective rate for non-1031 cash investors and is not tax advice. No tax, legal, or investment advice is provided — consult your own CPA and attorney. Past performance does not guarantee future results.