Keystone National Properties, a sponsor of non-traded alternative investments, announced its acquisition of a FedEx Ground distribution facility for the company’s latest Delaware statutory trust offering, Keystone 1031 Lansing Industrial.
KNPRE says the facility was acquired for $24 million and that FedEx Ground signed a new 10-year lease extension in November 2022. KNPRE reports the lease has two 5-year options, with a 10% rental increase in the first option and a 5% increase in the second option. The property is located in the industrial sub-market of Lansing with access to the intersection of Interstate 69 and Interstate 496.
The 147,000-square-foot facility was built-to-suit the tenant in 2013 and recently underwent a parking lot and yard expansion to accommodate employee and distribution growth.
Within the immediate industrial submarket, and within a one-mile radius, there are various tenants nearby occupying industrial space, including Amazon.com Inc., Ryder System Inc., Meijer Inc., and General Motors Company.
“Given the current market environment, exchange investors seeking the potential for capital preservation and predictable income may benefit from allocating a portion of their exchange to this STNL [single-tenant net lease] asset with a long-term lease and credit tenant,” Mike Packman, founder and chief executive officer, said.
Keystone 1031 is a member of the Keystone National Property family of companies. Established in 2016, KNPRE provides impact and tax-advantaged investment opportunities for accredited investors. Since entering the DST space in 2021, Keystone has raised more than $33 million and has approximately $130 million in assets under management. Since inception, Keystone has raised around $175 million over all their tax-advantaged and impact real estate investment offerings.