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Sealy Industrial I, DST
Coming Soon / Under Review • Sealy
Investment Overview
The asset is comprised of a Class A +/-300,000 SF institutional-quality, climate-controlled distribution warehouse situated on 30 acres. The tenant, Pioneer Hi-Bred is a 100-year-old wholly-owned subsidiary of Corteva Agriscience, a global leader in agricultural science.
Investment Highlights
- Sealy Industrial I DST features one industrial property in Anderson, IN, near Indianapolis, which has a strong labor pool and other industrial and distribution activity in the area.
- The tenant is Pioneer Seed Company, which is owned by Cortiva Agriscience. Cortiva is the second-largest agribusiness company in the world. Since this building is near the company headquarters, it is mainly used to store more than $1 billion worth of corn and soybean seeds.
- The Property is situated near the region’s second largest employer, Kadlec Regional Medical Center, which provides residents with access to both accessible healthcare and relatively stable, healthcare-related employment opportunities.
- Currently, 11 years are remaining on the lease with 5.5% rent escalations every 3 years with two 5-year extension options. The asset is NNN with limited landlord responsibilities. The building was built to suit Pioneer Seed.
- Sponsor is new to 1031 exchange investments. No full-cycle offerings to analyze.
Quick Facts
Sponsor
Sealy
Status
Coming Soon / Under Review
Property Type
Industrial
Location
IN
Estimated Hold Period
7-10 Years
In-Place Loan
0% LTV
721 Exchange Exit
None
Current Yield
4.86%
Average Yield
5.11%
Est. Avg. Tax-Adjusted Yield⁴
6.6%
Cap Rate Equivalent⁵
6.09%
Contact
Gerald F. "Jerry" Baker, III
Founder, Managing Principal
D 415.579.1660
M 415.278.8503
E jerry@baker1031.com
Income Forecast
4.86%
Year 1
4.82%
Year 2
4.96%
Year 3
4.96%
Year 4
4.95%
Year 5
5.2%
Year 6
5.19%
Year 7
5.19%
Year 8
5.49%
Year 9
5.48%
Year 10
Property images depicted may not be pictures of properties in any current offering and may be representative.
Investment opportunities presented herein are subject to immediate change and may be withdrawn without prior notice. Availability is fluid and often fluctuates rapidly; an offering may close before updated notification is provided. Investors are strictly advised to contact their authorized representative to confirm the current status of any investment prior to committing funds.
The information provided above is for summary purposes only and may be incomplete, outdated, or contain technical inaccuracies. This summary is qualified in its entirety by, and should be read in conjunction with, the relevant Private Placement Memorandum (PPM) and all associated supplements. Prospective investors must rely solely on the PPM and formal offering documents when evaluating the merits and risks of an investment.
⁴Sponsor's Cost Segregation analysis is currently incomplete; therefore, to estimate depreciation benefits, it is assumed the investor is in a 40% combined marginal tax bracket with no current depreciation basis in the property outside of this investment. Average income shielding for this DST is estimated at 45% based on standard IRS straight-line depreciation recovery periods for commercial real estate (39 years), as detailed in this Commercial Real Estate Depreciation Guide. Please refer to the Private Placement Memorandum (PPM) for specifics regarding a cost segregation; notably, even if the Trust does not perform a property-wide study, an individual investor may have the right to commission a private cost segregation study for their specific fractional interest to potentially unlock accelerated or "bonus" depreciation through a change in accounting method.
⁵The "Net-Adjusted Equivalency Cap Rate" is a comparative metric designed to normalize the returns of an all-inclusive Delaware Statutory Trust (DST) against a direct-ownership Net Lease (NNN) property. This metric is calculated by "reversing" a target cash-on-cash return to reconstruct a required Net Operating Income (NOI), adding back debt service and amortizing estimated acquisition, financing, and disposition "friction" costs over a 10-year holding period. This calculation is provided for educational and illustrative purposes only and is not a guarantee of future performance or an offer to sell securities. Limitations include the reliance on generalized market assumptions; individual property performance, actual interest rates, and specific transaction costs will vary. This should not be used as the primary basis for any investment decision. Estimates are derived from the following industry benchmarks: Acquisition Costs (2.5% - NAR Commercial), Loan Fees (1.0% - CREFC Guidelines), Sale Costs (6.0% - Altus Group), and Debt Assumptions (6.5% Interest/30-Yr Amort. - Select Commercial).
