Broadstone Net Lease & Prologis: $78.2M Build-to-Suit Partnership.
Broadstone Net Lease, a prominent real estate investment trust specializing in single-tenant, net-leased properties, today announced a significant expansion of its development pipeline through a new build-to-suit commitment valued at approximately $78.2 million. This development marks not only a substantial addition to the Company’s committed projects but also the commencement of a promising partnership with global logistics real estate leader, Prologis.
This strategic collaboration underscores Broadstone’s proactive approach to augmenting its growth trajectory and diversifying its network of esteemed development partners. The build-to-suit project, details of which are yet to be fully disclosed, will leverage Prologis’ extensive expertise in developing high-quality industrial properties within high-barrier, high-growth markets. This aligns seamlessly with Broadstone’s established industrial-focused investment strategy, emphasizing the acquisition and development of strategically located assets that generate long-term value.
John Moragne, Chief Executive Officer of Broadstone Net Lease, expressed his enthusiasm for this new venture, stating, “We are extremely excited to not only add an additional $78.2 million to our committed pipeline but to also establish a new relationship with Prologis. Prologis’ global leadership in supply chain infrastructure and their proven track record in developing best-in-class industrial properties make them an ideal partner for Broadstone as we continue to expand our build-to-suit capabilities.”
The partnership with Prologis signifies a pivotal step for Broadstone in accessing a wider pool of development opportunities and benefiting from Prologis’ deep market knowledge and development acumen. Prologis, renowned for its focus on strategically located industrial properties that facilitate efficient supply chains, brings a wealth of experience in identifying and executing complex development projects. Their commitment to quality and sustainability resonates with Broadstone’s own dedication to excellence and long-term value creation for its shareholders.
“We look forward to bringing this project to completion over the next 15 months while pursuing additional opportunities together in the near future and believe this marks the beginning of an exciting new relationship,” added Mr. Moragne. The anticipated 15-month timeline for the completion of this $78.2 million development underscores the immediate impact of this partnership on Broadstone’s near-term growth prospects.
In addition to this landmark collaboration with Prologis, Broadstone provided an update on its existing build-to-suit development pipeline as of April 24, 2025. The Company has secured the land and commenced construction on another significant build-to-suit project: a state-of-the-art distribution warehouse facility for FCA US, LLC, the American subsidiary of the multinational automotive conglomerate Stellantis. This substantial project, located in Forsyth, Georgia, encompasses approximately 422,000 projected rentable square feet and represents a total project commitment and estimated total project investment of $78.2 million. The facility is anticipated to be delivered in the third quarter of 2026 and is under a 15-year lease term, highlighting the long-term nature of Broadstone’s build-to-suit investments. As of April 24, 2025, the cumulative investment in this project stands at $10.5 million, with an estimated remaining investment of $67.7 million. The estimated cash capitalization rate for this development is 6.9%, with an estimated straight-line yield of 8.4%.
The Company’s actively under-construction development pipeline also includes several other notable projects across both the retail and industrial sectors. In the in-process retail segment, Broadstone is developing two 7 Brew drive-thru coffee locations. The High Point, North Carolina location, with a projected rentable square footage of 1,000, commenced construction in December 2024 and is targeted for stabilization in April 2025. The total project commitment and estimated total project investment for this site are $1.975 million, with a cumulative investment of $1.477 million as of the reporting date. The Charleston, South Carolina location, also with 1,000 projected rentable square feet, broke ground in February 2025 and is also expected to stabilize in April 2025. This project has a total project commitment and estimated total project investment of $1.729 million, with a cumulative investment of $1.035 million. Both 7 Brew locations have a 15-year lease term and exhibit robust estimated cash capitalization rates of 8.0% and 7.9%, respectively, with an estimated straight-line yield of 8.8% for both.
Within the in-process industrial segment, beyond the Stellantis facility, Broadstone is undertaking significant expansions for Sierra Nevada in Dayton, Ohio, and Southwire in Bremen, Georgia. The two Sierra Nevada projects, each with 122,000 projected rentable square feet and 15-year lease terms, commenced in October 2024. The first Dayton facility is targeted for stabilization in November 2025, with a total project commitment and estimated total project investment of $58.563 million and a cumulative investment of $14.802 million. The second Dayton facility is expected to stabilize in March 2026, with a total project commitment and estimated total project investment of $55.525 million and a cumulative investment of $10.795 million. These projects exhibit estimated cash capitalization rates of 7.6% and 7.7%, respectively, and an estimated straight-line yield of 9.4% and 9.6%.
The Southwire development in Bremen, Georgia, is a substantial 1,200,000 projected rentable square foot industrial facility with a 10-year lease term. Construction began in December 2024, with a target stabilization date of July 2026. The total project commitment for this significant undertaking is $115.411 million, with an estimated total project investment of $109.845 million and a cumulative investment of $11.403 million. The estimated cash capitalization rate for the Southwire project is 7.6%, with an estimated straight-line yield of 8.6%.
Collectively, Broadstone’s actively under-construction development pipeline encompasses approximately 1,868,000 projected rentable square feet with a weighted average lease term of 13.2 years. The total project commitment for these in-process developments amounts to $311.445 million, with an estimated total project investment of $305.879 million and a cumulative investment of $50.054 million as of April 24, 2025. The estimated remaining investment across these projects is $255.825 million, with a weighted average estimated cash capitalization rate of 7.4% and a weighted average estimated straight-line yield of 8.9%.
Furthermore, Broadstone provided an update on its stabilized industrial development, the UNFI facility in Sarasota, Florida. This 1,016,000 projected rentable square foot property, under a 15-year lease, commenced construction in May 2023 and has been completed. The total project commitment and estimated total project investment for this stabilized asset are $204.833 million and $200.958 million, respectively, with the full amount invested as of the reporting date. The UNFI facility exhibits an estimated cash capitalization rate of 7.2% and an estimated straight-line yield of 8.6%.
In total, Broadstone’s development portfolio, including both in-process and stabilized projects, comprises approximately 2,884,000 projected rentable square feet with a weighted average lease term of 13.9 years. The total project commitment for the entire development portfolio is $516.278 million, with an estimated total project investment of $506.837 million and a cumulative investment of $251.012 million. The estimated remaining investment stands at $255.825 million, with a weighted average estimated cash capitalization rate of 7.3% and a weighted average estimated straight-line yield of 8.8%.
The addition of the $78.2 million build-to-suit development in partnership with Prologis, alongside the continued progress of its existing pipeline, underscores Broadstone Net Lease’s commitment to strategic growth and its ability to capitalize on attractive development opportunities. The Company’s focus on high-quality tenants, long-term leases, and strategic partnerships positions it well for sustained value creation in the net lease sector. The collaboration with a global leader like Prologis further enhances Broadstone’s capabilities and opens doors for future growth and diversification within the industrial real estate landscape. This announcement reflects Broadstone’s proactive approach to expanding its asset base and delivering consistent returns to its investors.
