Broadstone Net Lease expands pipeline with $117.4M investments

By Bobby Samwell • Monday, January 06 10:18 • Permanent Link

Broadstone Net Lease, Inc. (NYSE: BNL) has announced a significant addition to its committed pipeline of build-to-suit development commitments. The company has added two new developments with an aggregate estimated total project investment of approximately $117.4 million. This growth in the pipeline comes ahead of the fourth quarter 2024 earnings release and conference call scheduled for February 19, 2025.

As of December 31, 2024, Broadstone Net Lease had actively secured the land and started construction on two additional build-to-suit development opportunities. Notably, this includes a new state-of-the-art distribution warehouse facility for Southwire Company that is expected to deliver in the third quarter of 2026.

Here's a breakdown of the developments that are actively under construction as outlined in the press release:

Sierra Nevada (Dayton, OH): It encompasses two industrial properties with a projected rentable square footage of 122 each. The total project commitment for these developments amounts to $114,088, with an estimated total project investment of $113,088. The cumulative investment at December 31, 2024, stood at $55,825.
Southwire (Bremen, GA): This industrial property covers a projected rentable square footage of 1,200. The total project commitment is valued at $115,411, with an estimated total project investment of $107,333. The cumulative investment at December 31, 2024, was $8,285.
7 Brew (High Point, NC): This retail property has a projected rentable square footage of 1. The total project commitment for this development is $1,975, with an estimated total project investment of $1,975. The cumulative investment at December 31, 2024, was $1,173.
UNFI (Sarasota, FL): An industrial property with a projected rentable square footage of 1,016. The total project commitment for this development amounts to $204,833, with an estimated total project investment of $200,186. The cumulative investment at December 31, 2024, stood at $190,573.

The estimated cash capitalization rates and straight-line yields for these developments ranged between 7.2% to 7.8% and 8.6% to 9.6%, respectively.

In addition to the pipeline growth, the company also announced the appointment of Sam Delemos as the company’s Vice President of Build-to-Suit Development. Sam brings a wealth of experience, having executed over $2.0 billion in transaction volume from acquisition through disposition, including industrial build-to-suit transactions totaling more than 7.0 million square feet.

Broadstone Net Lease, Inc. is set to release its financial and operating results for the quarter and year ended December 31, 2024, after the market closes on February 19, 2025. The company will host its earnings conference call and audio webcast on February 20, 2025, at 1:00 p.m. Eastern Time. The market has reacted to these announcements by moving the company's shares -1.0% to a price of $15.69. For more information, read the company's full 8-K submission here.

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