Northrop Grumman SCIF & Lab Facility DST

Overview

SE NG (Gilbert), DST is a single-tenant net-lease Delaware Statutory Trust investment in a newly constructed approximately 119,180-square-foot Class A office, SCIF and laboratory facility at 1655 W. Elliot Road in Gilbert, Arizona. The property is 100% leased to Northrop Grumman Systems Corporation through January 31, 2037, with 3% annual rent increases and three five-year renewal options. The capitalization is approximately $61.532 million, consisting of $27.855 million of equity and $33.677 million of projected non-recourse debt, against a $56.128 million purchase price.

Highlights

Analysis

Insights

The investment case depends on Northrop's continued use of a specialized secure facility, the durability of the actual lease obligor's credit, the final loan pricing, and the economics of a future sale after a 10-year leveraged hold.

Projected Distributions

Projected, not guaranteed. Distribution rates are the sponsor’s projections, are not a promise of performance, and can be reduced or suspended. ¹ Estimated Tax-Adjusted Yield reflects the projected impact of depreciation and amortization deductions at an assumed combined federal and state tax rate; individual tax outcomes vary — consult your CPA regarding your specific situation. Cap Rate Equivalent is a Baker 1031 Investments calculation intended to allow comparison with direct property ownership; it is not a sponsor-reported figure and does not represent a rate of return. See the private placement memorandum for the assumptions behind these figures.

Financing

Benchmarks

Benchmarks compare this offering’s projected figures against sector medians computed across current offerings tracked by Baker 1031 Investments as of the last-updated date shown. Benchmark data is internal, unaudited, and subject to change.

The Sponsor

Syndicated Equities Founded 1986

Syndicated Equities is a Chicago private real estate firm with a 40-year history, distinguished by strength in government/GSA-leased and credit-tenant net-lease assets and by its global 'Access Funds' fund-of-funds vehicles. Citing roughly $2 billion in asset value, $600 million in equity and more than $4 billion acquired over its lifetime, the firm has returned $750 million-plus to investors and built multi-decade repeat relationships. The government-credit net-lease specialization is among the most defensive available, and the fund-of-funds capability adds an institutional dimension uncommon at its size.

Sponsor figures are provided by the sponsor and have not been independently verified except as described in the offering materials. Past performance does not guarantee future results.

Documents

• TeaserDownload
• BrochureDownload
• Private Placement MemorandumDownload