Sealy Industrial I is a debt-free DST holding a 300,000 SF Class A, climate-controlled bulk distribution warehouse completed in 2024 in Indianapolis, 100% net-leased to a Corteva (A-) subsidiary, Pioneer Hi-Bred, with ~10.5 years remaining plus two renewal options and 5.5% triennial escalations. The mission-critical facility stores more than $1 billion of seed inventory 36 miles from Corteva's headquarters at the I-65/I-69/I-70 logistics crossroads. The thesis is durable, escalating, investment-grade-guaranteed net-lease income, sponsored by ~80-year industrial specialist Sealy & Company over a 10-year hold.
, a wholly-owned subsidiary of EIDP, Inc. (the Guarantor) under parent Corteva, Inc. (NYSE: CTVA; S&P A-). 5% rent escalations every three years (January 2028, 2031, 2034). S.
population within a one-day drive; four Class I railroads), and is used to store more than $1 billion of seed inventory proximate to the tenant's HQ. Held debt-free. 2M SF). 10-year hold.
The properties are held free and clear with no mortgage, eliminating refinancing, maturity, rate-cap, and lender-foreclosure risk and removing the equal-or-greater-debt replacement requirement for 1031 investors. The structural trade-off is the absence of positive leverage.
The income stream is anchored by investment-grade-equivalent guaranteed credit. The operating tenant, Pioneer Hi-Bred, is backed by a lease guaranty from EIDP, Inc., a subsidiary of Corteva (NYSE: CTVA; S&P A-), a global agricultural-science leader with roughly $17.2 billion in sales. The defensive, non-cyclical nature of seed and crop-input demand provides a resilient revenue base relative to discretionary-demand industrial users.
The asset is operationally entrenched rather than a generic box. Located 36 miles from Corteva's corporate headquarters and purpose-configured as a climate-controlled facility storing over $1 billion of seed inventory, the property carries elevated tenant switching costs and a mission-critical logistics function within the tenant's network—characteristics that materially raise renewal probability and underpin re-leasing economics.
The submarket is a premier Midwest distribution crossroads. Indianapolis offers the convergence of Interstates 65, 69, and 70, four major freight railroads, six airports, and one-day-drive access to roughly half the U.S. population, making it a structurally advantaged logistics hub with a deep industrial tenant base that supports backfill demand in a re-leasing scenario.
Contractual rent growth is above the net-lease norm in step terms. The lease embeds 5.5% escalations every three years—an effective ~1.8% annual rate—compounding base rent across the term on a triple-net structure in which the tenant bears operating expenses, leaving the Trust's obligations limited and distributable cash insulated from operating-cost inflation.
The debt-free capital structure eliminates financing risk in full. With no mortgage on the Property, the offering carries no refinance, maturity, rate-cap, or foreclosure exposure and provides a clean basis for 1031 capital that does not require replacement leverage to offset boot. The structural trade-off is the absence of positive leverage, which caps levered return and positions the going-in distribution in the ~5% range.
The offering combines investment-grade-guaranteed net-lease credit with a defensive, unlevered balance sheet. Pioneer Hi-Bred—guaranteed by EIDP/Corteva (S&P A-)—occupies a modern (2024) Class A, climate-controlled distribution asset sited near the tenant's headquarters on a triple-net lease with ~10.5 years of initial term remaining, two renewal options, and 5.5% triennial escalators that pass operating costs to the tenant. The debt-free structure removes refinance, maturity, and rate-cap exposure; Indianapolis offers favorable logistics fundamentals (national industrial vacancy stabilizing near 7.1% with positive rent growth); and the Sponsor is a long-tenured industrial specialist (~80 years, ~$3.16B AUM, 35.2M SF owned/managed) with a fully integrated operating platform. The forecast produces an escalating distribution stepping with the lease's triennial rent increases.
Income is fully concentrated in a single tenant, and the climate-controlled facility is configured for the tenant's seed-distribution use, so a vacancy or default could entail substantial re-leasing or retrofit costs and a lower sale price. The tenant holds a Right of First Offer to purchase the Property during the lease term, which can delay a third-party sale or suppress competitive-bid pricing at disposition. Escalations occur only every three years (5.5% steps in 2028, 2031, and 2034) rather than annually, so real income is flat between steps and lags annual-bump structures during inflationary stretches. The direct lessee is a subsidiary, with credit support resting on the EIDP/Corteva guaranty—one step removed and exposed to the parent's cyclical agricultural-science earnings. Finally, while Sealy is a seasoned direct industrial owner-operator, it is comparatively new to the 1031/DST syndication channel, with limited full-cycle DST offerings against which to assess disposition execution, and the renewal decision at the ~10.5-year initial-term mark concentrates rollover and re-leasing risk near the projected exit.
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 offering reads as a defensive, income-oriented single-tenant industrial net-lease DST with investment-grade-guaranteed cash flow, above-market triennial escalators, and a debt-free balance sheet that removes financing risk. The risk-adjusted profile is conservative on credit and structure but concentrated on one tenant whose renewal at the ~10.5-year mark and Right of First Offer are the dominant exit variables. The Indianapolis logistics market - stabilizing vacancy near 7.1% with continued rent growth - supports re-leasing, and the mission-critical proximity to Corteva's HQ raises renewal probability and switching costs. Feasibility of the ~5% cash-on-cash schedule rests on continued tenant occupancy and a 2035-2036 exit pricing; the unlevered structure caps return at the asset's in-place yield, and the $40.47M raise capitalizing a $33.40M property embeds a ~17.5% premium (including a 4.00% bridge-carry cost) that disposition pricing must overcome to preserve equity. Sealy's deep direct-industrial pedigree is a meaningful positive, tempered by its limited DST full-cycle history.
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.
| Metric | This Offering | Market Avg. | Assessment |
|---|---|---|---|
| Avg. Income | 5.05% | 5.39% | Meets Average |
| Income Growth | 13.10% | 13.50% | Meets Average |
| Peak Income | 5.44% | 5.84% | Meets Average |
Sealy & Company
Sealy & Company is a Shreveport- and Dallas-based industrial-only specialist, founded in 1946 and now in its fourth generation of family ownership, managing $3 billion across roughly 33 million square feet. The single-sector focus on industrial—the most secularly favored property type—paired with a 75-plus-year, nine-cycle track record and a vertically integrated platform across some 28 markets, makes Sealy a focused, durable operator. Its longevity and asset-class concentration are precisely the qualities institutional allocators prize in industrial.
Learn More About Sealy & Company →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.