Your 1031 DST Authority
Sealy Industrial I, DST
Offering Overview
A 300,000 SF Class A, climate-controlled bulk distribution warehouse ("Scannell Pioneer," 4210 West 67th Street, Indianapolis, IN) on 30 acres, completed in 2024 and 100% net-leased to Pioneer Hi-Bred International, Inc., a wholly-owned subsidiary of EIDP, Inc. (the Guarantor) under parent Corteva, Inc. (NYSE: CTVA; S&P A-). The NNN lease has ~10.5 years remaining on its initial term plus two five-year renewal options, with 5.5% rent escalations every three years (January 2028, 2031, 2034). The asset sits 36 miles from Corteva's headquarters in the Indianapolis logistics crossroads (I-65/I-69/I-70 convergence; ~49% of the U.S. population within a one-day drive; four Class I railroads), and is used to store more than $1 billion of seed inventory proximate to the tenant's HQ. Held debt-free. The thesis is durable, escalating, investment-grade-guaranteed net-lease income from a mission-critical, build-to-suit-quality distribution facility, sponsored by Sealy & Company, an ~80-year industrial specialist (~$3.16B AUM, 35.2M SF). 10-year hold.
Investment Highlights
- The income stream is anchored by investment-grade-equivalent guaranteed credit. The operating tenant, Pioneer Hi-Bred, is backed by a lease guaranty from EIDP, Inc., a subsidiary of Corteva (NYSE: CTVA; S&P A-), a global agricultural-science leader with roughly $17.2 billion in sales. The defensive, non-cyclical nature of seed and crop-input demand provides a resilient revenue base relative to discretionary-demand industrial users.
- The asset is operationally entrenched rather than a generic box. Located 36 miles from Corteva's corporate headquarters and purpose-configured as a climate-controlled facility storing over $1 billion of seed inventory, the property carries elevated tenant switching costs and a mission-critical logistics function within the tenant's network—characteristics that materially raise renewal probability and underpin re-leasing economics.
- The submarket is a premier Midwest distribution crossroads. Indianapolis offers the convergence of Interstates 65, 69, and 70, four major freight railroads, six airports, and one-day-drive access to roughly half the U.S. population, making it a structurally advantaged logistics hub with a deep industrial tenant base that supports backfill demand in a re-leasing scenario.
- Contractual rent growth is above the net-lease norm in step terms. The lease embeds 5.5% escalations every three years—an effective ~1.8% annual rate—compounding base rent across the term on a triple-net structure in which the tenant bears operating expenses, leaving the Trust's obligations limited and distributable cash insulated from operating-cost inflation.
- The debt-free capital structure eliminates financing risk in full. With no mortgage on the Property, the offering carries no refinance, maturity, rate-cap, or foreclosure exposure and provides a clean basis for 1031 capital that does not require replacement leverage to offset boot. The structural trade-off is the absence of positive leverage, which caps levered return and positions the going-in distribution in the ~5% range.
Forecasted Cash Flow
Projected annual cash-on-cash distributions with the corresponding tax-equivalent yield over the hold, based on the sponsor’s underwriting assumptions.
Illustrative projections only — targeted distributions are not guaranteed and actual results will vary. Tax-equivalent yield assumes depreciation shelter of distributed income.
Analyst Notes
The offering reads as a defensive, income-oriented single-tenant industrial net-lease DST with investment-grade-guaranteed cash flow, above-market triennial escalators, and a debt-free balance sheet that removes financing risk. The risk-adjusted profile is conservative on credit and structure but concentrated on one tenant whose renewal at the ~10.5-year mark and Right of First Offer are the dominant exit variables. The Indianapolis logistics market - stabilizing vacancy near 7.1% with continued rent growth - supports re-leasing, and the mission-critical proximity to Corteva's HQ raises renewal probability and switching costs. Feasibility of the ~5% cash-on-cash schedule rests on continued tenant occupancy and a 2035-2036 exit pricing; the unlevered structure caps return at the asset's in-place yield, and the $40.47M raise capitalizing a $33.40M property embeds a ~17.5% premium (including a 4.00% bridge-carry cost) that disposition pricing must overcome to preserve equity. Sealy's deep direct-industrial pedigree is a meaningful positive, tempered by its limited DST full-cycle history.
Pros
The offering combines investment-grade-guaranteed net-lease credit with a defensive, unlevered balance sheet. Pioneer Hi-Bred—guaranteed by EIDP/Corteva (S&P A-)—occupies a modern (2024) Class A, climate-controlled distribution asset sited near the tenant's headquarters on a triple-net lease with ~10.5 years of initial term remaining, two renewal options, and 5.5% triennial escalators that pass operating costs to the tenant. The debt-free structure removes refinance, maturity, and rate-cap exposure; Indianapolis offers favorable logistics fundamentals (national industrial vacancy stabilizing near 7.1% with positive rent growth); and the Sponsor is a long-tenured industrial specialist (~80 years, ~$3.16B AUM, 35.2M SF owned/managed) with a fully integrated operating platform. The forecast produces an escalating distribution stepping with the lease's triennial rent increases.
Cons
Income is fully concentrated in a single tenant, and the climate-controlled facility is configured for the tenant's seed-distribution use, so a vacancy or default could entail substantial re-leasing or retrofit costs and a lower sale price. The tenant holds a Right of First Offer to purchase the Property during the lease term, which can delay a third-party sale or suppress competitive-bid pricing at disposition. Escalations occur only every three years (5.5% steps in 2028, 2031, and 2034) rather than annually, so real income is flat between steps and lags annual-bump structures during inflationary stretches. The direct lessee is a subsidiary, with credit support resting on the EIDP/Corteva guaranty—one step removed and exposed to the parent's cyclical agricultural-science earnings. Finally, while Sealy is a seasoned direct industrial owner-operator, it is comparatively new to the 1031/DST syndication channel, with limited full-cycle DST offerings against which to assess disposition execution, and the renewal decision at the ~10.5-year initial-term mark concentrates rollover and re-leasing risk near the projected exit.
Financing
This offering is unleveraged — the DST holds its assets debt-free (0% loan-to-value), so no mortgage financing applies.
Benchmark Comparison
| Metric | This Offering | Benchmark | Difference |
|---|---|---|---|
| Average Yield | 5.05% | 0.00% | — |
| Max Yield | 5.44% | 5.85% | −7.01% |
| 10-Yr Income Growth | 13.10% | 14.41% | −9.09% |
Benchmark reflects the average of comparable Industrial offerings. Differences are relative to the benchmark.
Offering Documents
Offering Documents Available By Request
About the Sponsor
Sealy & Company is a Shreveport- and Dallas-based industrial-only specialist, founded in 1946 and now in its fourth generation of family ownership, managing $3 billion across roughly 33 million square feet. The single-sector focus on industrial—the most secularly favored property type—paired with a 75-plus-year, nine-cycle track record and a vertically integrated platform across some 28 markets, makes Sealy a focused, durable operator. Its longevity and asset-class concentration are precisely the qualities institutional allocators prize in industrial.
This page describes a specific Delaware Statutory Trust offering (Sealy Industrial I, DST) and is provided for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offering is made solely to verified accredited investors and only by means of a confidential private placement memorandum (PPM).
All figures shown — including minimum investment, cash-flow projections, tax-equivalent yield, loan-to-value, and hold period — reflect the sponsor's current estimates and assumptions and are not guarantees of future performance. Tax-equivalent yield depends on each investor's tax circumstances; projected distributions may not be achieved and actual results will vary. Sponsor track record, benchmark data, and full-cycle averages describe prior programs and are not indicative of the results of this offering.
An investment in a DST is speculative, illiquid, and involves a high degree of risk, including the possible loss of the entire amount invested. There is no public market for these interests, distributions are not guaranteed, and investors have no control over property operations. 1031 exchange and tax treatment depend on each investor's individual circumstances and on tax laws that are subject to change; consult your own tax and legal advisors.
Tax-equivalent yield represents the pre-tax yield a fully taxable investment would need to generate in order to match the after-tax cash flow of this offering. It assumes that a portion of distributions is sheltered by depreciation and other deductions, and it depends entirely on each investor's individual tax bracket, state of residence, and holding structure. It is illustrative only and is not a projection of return. Cap rate equivalent is the implied capitalization rate (net operating income divided by purchase price) shown solely for comparison to direct real estate; it is not a distribution rate, a yield, or a measure of investor return.
This offering and all terms shown are subject to change, withdrawal, or cancellation at any time without notice, and availability is not guaranteed. Nothing on this page creates a commitment or reservation. An investment is confirmed only upon the sponsor's acceptance of fully executed subscription documents; no other communication, indication of interest, or reservation constitutes a binding investment.