Broadstone Net Lease Secures $303M Colorado Build-to-Suit with 8.5% Initial Yield
BNL•Broadstone Net Lease agreed to a joint venture for a $303 million build-to-suit advanced technology facility in Colorado leased to a Fortune 20 investment-grade company. The project features a 15-year triple-net lease with 8.5% year-one cash yield, 11.6% straight-line yield and annual 3% rent escalations.
1. Project Overview
Broadstone Net Lease has entered a joint venture to develop an approximately 112,000-square-foot advanced technology facility in Colorado for a Fortune 20 investment-grade tenant. The project is structured as a build-to-suit powered shell with anticipated completion and rent commencement by March 2027.
2. Financial Structure
The Company’s total investment is approximately $303 million, funded through the joint venture, with estimated year-one cash yield of 8.5%, year-two yield of 9.7%, and a straight-line yield of 11.6%. The triple-net lease carries a 15-year initial term with two five-year extensions and annual rent escalations of 3%.
3. Strategic Importance
Upon rent commencement, this tenant will become Broadstone Net Lease’s largest, and management expects the project to be meaningfully accretive to 2027 and 2028 earnings. The lease with a high-credit tenant underpins the Company’s build-to-suit development strategy and diversifies its industrial portfolio.
4. Future Optionality
The site offers regional technology ecosystem access, affordable power, and proximity to key customers, and the joint venture controls the full campus land. A future second powered shell is allowable under the lease with a right of first refusal for the tenant.
