Broadstone Net Lease said it has added a new build-to-suit development to its pipeline, committing to a joint venture project in Colorado with an estimated total investment of $303 million.
The project is an approximately 112,000-square-foot advanced technology facility for a Fortune 20, investment-grade company. BNL said its year-one cash yield is expected to be 8.5%, rising to 9.7% in year two, with a straight-line yield of 11.6%.
The lease will run for 15 years, with two 5-year extension options, and includes 3% annual rent increases.
BNL said $69.8 million of the project has already been invested, leaving $233.2 million remaining. The company expects the development to reach substantial completion and rent commencement by March 2027.
The facility will be delivered as a powered shell. BNL said the site is designed to accommodate a second powered shell building, and the tenant has a right of first refusal on any future development there. The joint venture owns and controls the land for the full campus.
The company said the tenant will become BNL’s largest tenant once rent begins, and the deal is expected to be meaningfully accretive to 2027 and 2028 earnings. The market has reacted to these announcements by moving the company's shares 2.45% to a price of $21.925. For the full picture, make sure to review Broadstone Net Lease's 8-K report.
