Lansing, MI Keystone National Properties (KNPRE), a real estate sponsor that specializes in impact and tax advantaged investment opportunities for accredited investors, has acquired a FedEx Ground distribution facility, for their next DST offering - Keystone 1031 Lansing Industrial. The facility was acquired for $24,785,203. The cash flow generated from the 147,000 s/f facility seeks to help exchange investors generate income potential while deferring their capital gains and preserving capital.
The property was built to suit the tenant in 2013 and recently underwent a parking lot and significant yard expansion to accommodate employee and distribution growth. FedEx Ground signed a new 10-year lease extension in November 2022. The lease has two 5-year options, with a 10 percent rental increase in the first option and a five percent increase in the second option. The property is conveniently located in the Western industrial sub-market of Lansing with immediate access to the intersection of Interstate 69 and Interstate 496. With access to interstates and the central Michigan location, Lansing is a strategic logistics hub that can reach 40 million people within 250 miles. Central Michigan is also 500 miles from nearly half of the United States population. Lansing is only a 90-mile drive from the Ambassador Bridge in Detroit, which is the most active border crossing in North America - 25% of the $700 billion annual trade with Canada passes over the Ambassador Bridge.
Within the immediate industrial submarket, and within a one-mile radius, there are many notable tenants occupying industrial space, including: Amazon, Ryder, Meijer, and General Motors. General Motors has its newest United States plant, a 3.4 million s/f assembly plant, directly across Interstate 96 from the Property – the GM Lansing Delta Township Assembly Plant. GM assembles the Buick Enclave and Chevrolet Traverse at this plant. In addition, several miles away on Interstate 496, GM has another assembly plant, the Grand River Assembly Plant, that assembles several Cadillac models and the Chevrolet Camaro.
“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 asset with a long-term lease and credit tenant,” said Mike Packman, founder & CEO. “We continue to stay true to our investment philosophy of what we feel are nationally recognized brands, credit tenants, and top markets to strive to help investors defer their capital gains tax, preserve capital, and receive potential cash flow. We are excited to bring this offering to market.”
Since entering the DST space in 2021, Keystone has raised over $33 million and has approximately $130 million in assets under management. Since inception, Keystone has raised nearly $175 million over all their tax-advantaged and impact real estate investment offerings.
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