Dallas MSA Class A Distribution Center

Asset Overview

This Class A distribution center represents a brand new, state-of-the-art logistics facility built in 2024 on 65.9 acres in Lancaster, Texas — the southern logistics corridor of the Dallas-Fort Worth metroplex within the SE Dallas / I-45 submarket.

The warehouse totals 799,529 square feet with 10,000 square feet of office space. Building specifications include 40-foot clear ceiling heights, tilt-wall construction, 142 dock doors, and 4 drive-in doors. Exterior improvements include 258 trailer parking spaces, 101 box trailer parking spaces, and 318 automobile parking spaces.

Lease Structure

The property is occupied by a creditworthy national tenant on a long-term triple-net lease generating $5,900,530 in annual rent at a current rate of $7.38 per square foot. The lease structure provides 9 years of remaining term with 3.25% annual escalations, delivering predictable cash flow growth throughout the hold period.

Two 5-year renewal options are in place, with the first renewal priced at $9.84 per square foot — a 33% increase over the current rate, providing significant mark-to-market upside at renewal.

Financial Performance

At the asking price, the asset represents a 5.78% capitalization rate and approximately $128 per square foot — attractive basis for institutional-quality industrial product in one of the nation's strongest logistics markets.

Market Context

Dallas-Fort Worth has become the nation's fastest-growing distribution market, driven by population growth exceeding 100,000 annually, central geographic positioning, and sustained e-commerce demand. Lancaster's position along I-20 and I-35E provides access to over 30 million consumers within a one-day drive.

Industrial vacancy across DFW has compressed below 5%, with rental rates growing at double-digit annual rates. Limited land availability for new development in core submarkets has pushed tenants to emerging logistics corridors like Lancaster, which offers modern facilities with excellent transportation access.

Investment Thesis

Long-term leases to credit tenants offer the cash flow stability and predictability that institutional allocators seek. The combination of brand-new construction, creditworthy tenancy, contractual rent growth, and mark-to-market upside at renewal creates a compelling risk-adjusted return profile.

Tokenization enables broader investor participation in single-tenant industrial assets at this scale — a product type historically accessible only through REITs or direct institutional ownership.