Secure Net Lease Industrial I DST Overview
Secure Net Lease Industrial I, DST is a Delaware statutory trust offering up to 21,930 Class A beneficial interests at $1,000 each (a maximum equity raise of $21,930,000) to accredited investors completing a Section 1031 exchange or making a cash investment. The Trust owns a single asset: the Amazon Last Mile Distribution Center, a 123,903-square-foot distribution and warehouse facility at 3799 Northwest Passage in Tallahassee, Florida. Completed in 2023 and situated on approximately 47.82 acres, the single-story building includes warehouse and office space, 12 loading docks, a trucking terminal, and 583 parking spaces. The property is leased 100% to Amazon.com Services, LLC, a wholly owned subsidiary of Amazon.com, Inc. (NASDAQ: AMZN), under a 15-year lease that commenced in October 2023 and runs through October 2038, with five five-year renewal options at fair market value and roughly 2.5% annual rent escalations. The Trust acquired the property on an off-market basis for a net purchase price of $36,602,215 and financed it with a $20,445,000 interest-only loan from KeyBank National Association. It is structured as a DST so that each interest is treated as a direct interest in real estate, allowing exchangers to defer capital gains under Section 1031. Sponsored by affiliates of Secure Properties, LLC, the Trust is managed by Secure Net Lease Industrial Manager I, LLC, and the property is master-leased to an affiliated master tenant that subleases to Amazon. Distributions are projected to begin at an annualized 4.75% of invested equity and rise toward 6.32% over an approximately six- to nine-year hold, after which the sponsor intends to sell the asset. The offering suits accredited, income-oriented 1031 investors who want passive, single-tenant industrial exposure to a credit tenant and can accept illiquidity, leverage, and the absence of day-to-day control.
Highlights
The property sits in Tallahassee, Florida's state capital and the seat of Leon County, roughly five miles west of the Central Business District and the State Capitol within the West Tallahassee submarket. The site has direct access to U.S. Highway 90 (Tennessee Street) and Interstate 10, a major east-west corridor spanning the state from Pensacola to Jacksonville, and sits about five miles from Tallahassee International Airport, supporting efficient last-mile delivery across North Florida and South Georgia. The Tallahassee MSA has a population of roughly 396,816, anchored by stable government and education employers including the State of Florida, Florida State University (enrollment exceeding 45,000) and Florida A&M University, plus Tallahassee Community College. The appraisal notes the industrial submarket has shown rising occupancy, positive absorption, and limited for-sale supply, supporting durable demand for well-located distribution space and above-average acceptance for the facility.
Built in 2023, the 123,903-square-foot facility is modern, purpose-built last-mile infrastructure on approximately 47.82 acres, with tilt-up concrete and metal-frame construction, a TPO roof, 12 loading docks, a dedicated trucking terminal, and 583 parking spaces (including 44 truck spaces) to support high-throughput fulfillment. An independent needs assessment rated the building in good condition, and the appraisal estimated a remaining economic life of at least 44 years. The property is leased entirely to Amazon.com Services, LLC, a subsidiary of Amazon.com, Inc., under a 15-year lease running to October 2038 with five five-year renewal options. Amazon may operate 24 hours a day, seven days a week, and reimburses operating expenses, property taxes, and insurance, so in-place base rent of about $2.12 million in year one escalates roughly 2.5% annually to nearly $3.0 million by lease year 15. The sponsor believes in-place rent is below market for comparable Amazon-leased facilities.
The Trust financed the acquisition with a $20,445,000 first-mortgage loan from KeyBank National Association, producing conservative leverage of roughly 48.9% loan-to-purchase price (about 55.9% loan-to-cost against the $36,602,215 net acquisition price). The loan is interest-only for its entire term, which preserves cash flow for distributions during the hold and avoids amortization drag. Combined with the $21,930,000 maximum equity raise, total capitalization is approximately $42,375,000. The Trust also funded $550,000 of operating reserves at closing to help support projected distributions and cover capital and operating obligations the Trust bears under its master lease. Because the DST structure prohibits refinancing and additional capital calls, the fixed, interest-only financing gives investors defined debt terms for the life of the investment, with the loan maturing September 1, 2035 and the property expected to be sold within the anticipated six- to nine-year hold window.
The offering is sponsored by affiliates of Secure Properties, LLC, a boutique real estate firm focused on mission-critical, net-leased real estate. Since 2020, Secure Properties has sponsored 100 privately offered real estate programs, raised over $850 million from more than 100 investors, and today owns and manages a portfolio exceeding $1.5 billion across more than 425 properties nationwide. The leadership team brings deep net-lease experience: Managing Principal and CIO Brian Mansouri previously led net lease at SomeraRoad (about a $1 billion portfolio) and helped oversee more than $7 billion of acquisitions for two publicly traded net-lease REITs at AR Global, having closed over $4 billion of net-lease real estate in his career. Principal Kevin Ross has managed over $1.5 billion in net-lease acquisitions and financings, and Vice President James Gagliano previously supported a well-established DST program at Four Springs Capital. The sponsor will actively asset-manage the property and intends to pursue early renewal discussions with Amazon ahead of exit.
The DST is designed so that each beneficial interest is treated as a direct interest in real estate, enabling investors to use the interests as replacement property in a Section 1031 exchange and defer capital gains and depreciation-recapture taxes, with a $100,000 minimum for exchangers ($25,000 for cash investors). Investors receive passive, fractional ownership without the management responsibilities of direct real estate, and the structure preserves a full step-up in basis to heirs at death. To provide additional exit flexibility, beginning two years after the offering closes the Trust Manager holds an FMV Option: it may, but is not obligated to, acquire investors' interests for cash or for units in an affiliated 'Exchange Entity' at a price based on a third-party appraisal, offering a potential 721-style path to continued tax deferral if Section 1031 is unavailable at the time of disposition. Investors should note that reserves and other non-real-estate amounts may be treated as taxable 'boot.'
Analysis of Secure Net Lease Industrial I DST
Insights
For a 1031 exchanger, this is less a real-estate purchase than a fifteen-year Amazon credit note wrapped in a levered, single-tenant net-lease DST: a purpose-built 2023 last-mile facility in Tallahassee, a stable but slow-growth government-and-university market, with essentially the entire return thesis riding on one tenant and one exit. Distributions begin near 4.75% and grind toward 6.32% (an average around 5.4%), with most total return deferred to a sale in the six-to-nine-year window. That is unremarkable pay for the risk: against the industrial net-lease benchmark the average and peak yields only meet the market average, and only projected growth screens above it, so the investor earns no yield premium for taking concentrated single-tenant, single-asset exposure. On top of thin yield sits a heavy 9.5% total load, and investors capitalize the deal at roughly $42.4 million versus a net acquisition price of $36.6 million and an as-is appraised value of $38.5 million, an 8-14% premium over cost and appraisal, while the hypothetical 'go dark' value of just $23.4 million shows how much of that basis is lease rather than bricks. Coverage deserves equal weight: the sponsor's own projections concede the property cannot cover expenses, capital items, and master-lease rent without drawing on the $550,000 reserve, so the early yield is partly a reserve-funded cushion, not clean operating income; watch reserve burn against the modest 2.5% escalations. Note too that the master lease is not truly triple-net, leaving tax, insurance, and some capital risk with the Trust, and while Secure Properties carries a credible roughly $1.5 billion net-lease record, the specific Trust Manager and thinly capitalized, affiliate-guaranteed master tenant are newly formed with no DST operating history. The crux is the exit. Interest-only debt maximizes current cash flow but leaves a September 2035 balloon that cannot be refinanced inside the DST and must be met by sale, compressing the whole outcome into one window and exposing investors to cash-sweep and lender-termination provisions if Amazon falters. Three variables decide it: whether Amazon actually renews and keeps using the site (last-mile footprints get rationalized), whether in-place rent truly sits below market as the sponsor claims (the mark-to-market case), and the exit cap rate against the rate environment at maturity. The FMV Option offers a possible 721-style continuation of deferral, but it is discretionary to the Manager and priced to appraisal, optionality rather than a guaranteed liquidity event. Verdict: this fits an accredited exchanger who specifically wants long-duration Amazon industrial exposure, values credit-tenant durability over diversification, and can sit through illiquidity, leverage, and a defined 2035 exit. Investors seeking diversification, yield genuinely above market for the risk taken, current-income certainty, or real downside protection should pass, with the go-dark gap and the reserve-funded early yield the two facts they should not look past.
Advantages
Credit tenancy: the property is leased 100% to a subsidiary of Amazon.com, Inc. (NASDAQ: AMZN), one of the world's largest companies, under a lease running to October 2038 with five renewal options and roughly 2.5% annual rent escalations that build in income growth. Modern, mission-critical asset: the facility was completed in 2023 as purpose-built last-mile infrastructure, was rated in good condition, and has an estimated remaining economic life of at least 44 years. Favorable basis: the Trust acquired the property off-market for $36,602,215, approximately 5% ($1,897,785) below appraised value, and management believes in-place rent is below market for comparable Amazon facilities, creating potential to mark rent to market at renewal and compress the exit cap rate. Conservative, fixed financing: leverage is roughly 48.9% loan-to-value on an interest-only KeyBank loan, which preserves cash flow and avoids amortization. Passive, tax-advantaged structure: the DST qualifies for Section 1031 exchange treatment, requires no investor management, offers a step-up in basis to heirs, and includes an FMV Option that may provide a 721-style continuation of tax deferral at exit. Income profile: distributions are projected to begin at an annualized 4.75% and rise toward 6.32% of invested equity over the hold, supported by $550,000 of operating reserves, an experienced net-lease sponsor in Secure Properties, and a stable Tallahassee government-and-education market with strong interstate and airport access.
Concerns
Single tenant and single asset: the Trust owns one property leased entirely to one Amazon subsidiary, so there is no diversification and a default, non-renewal, or 'go dark' by Amazon would severely impair income and value; the appraisal's hypothetical 'go dark' value was just $23,400,000, well below the roughly $42,375,000 investor basis. No control or liquidity: interests have no public market, are highly illiquid long-term holdings, and investors have no voting rights, with the Trust Manager making all decisions including the timing of any sale. Newly formed entities: the Trust, Trust Manager, and Master Tenant are newly formed with no operating history, and the Master Tenant is thinly capitalized with a $500,000 demand note and $65,000 in cash, guaranteed by an affiliate (UGDC) of limited net worth. Master lease is not triple-net: the Trust bears certain taxes, insurance, and capital obligations, and per the sponsor's own Projections the property will not generate enough cash flow to cover expenses, capital items, and master-lease rent without drawing on reserves, meaning early distributions are partly supported by reserves rather than solely by operations. Leverage risk: the interest-only loan carries a balloon due September 1, 2035, cannot be refinanced within the DST, and permits a lender cash sweep and even lender-forced termination of the master lease on default. DST inflexibility: if the Trust must act beyond its limited powers it may convert to a 'Springing LLC,' causing investors to lose 1031 eligibility. Fees and load: total selling commissions and expenses reach up to 9.5% of equity, plus acquisition, financing, asset-management, and 2.5% disposition fees, so investors pay a meaningful premium over the property's net cost and appraised value. Additional risks include hurricane and Wind Zone III exposure, partial FEMA flood zones, an 'as-is' purchase with limited seller warranties, reliance on unaudited historical financials, conflicts of interest among affiliates, and tax risk if the DST fails to comply with Revenue Ruling 2004-86.
Secure Net Lease Industrial I DST — Complete Offering Data
Offering & Structure
Investment NameSecure Net Lease Industrial I DST
SponsorSecure Properties
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusClosed
Last Updated2026-07-21
Size & Availability
Total Offering$42,375,000
Equity$21,930,000
Debt$20,445,000
Available Equity$0 (0% of equity)
Minimum Investment$100,000
Total Load9.50%
Initial Reserves1.30%
Property
Property TypeIndustrial
StrategyCore
LocationFL
Market TierTier 3
Income & Projections
Average Yield5.44%
Projected Yields (Y1–Y10)Y1 4.75% · Y2 4.78% · Y3 4.93% · Y4 5.17% · Y5 5.20% · Y6 5.45% · Y7 5.69% · Y8 5.94% · Y9 6.19% · Y10 6.32%
Tax-Adjusted Yield11.59%
Cap Rate Equivalent8.56%
Financing
In-Place LTV48.25% LTV
LenderKeyBank National Association
Loan TypeFixed
Interest Rate5.73% (Fixed)
Loan Term9.7 years; maturity 9/1/2035
I/O PeriodN/A
AmortizationN/A (interest-only)
Y1 DSCRNot Disclosed
Exit
Estimated Hold Period6-9 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income5.44% vs 5.33% market — Meets Average
Growth33.05% vs 15.09% market — Above Average
Peak6.32% vs 5.80% market — Meets Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
