Four Springs Finalizes $150.5M DST Offering

Four Springs TEN31 Xchange has fully subscribed its $150.5 million industrial DST offering, which includes 22 properties leased to major tenants across 13 states.

September 11, 2024

Four Springs TEN31 Xchange, a sponsor specializing in 1031 exchanges and replacement property solutions, has successfully subscribed its $150.5 million FSC Industrial Portfolio 27, DST. This offering included an equity raise of $78.3 million, with an additional $72.2 million in 1031 debt replacement.

Launched in April 2023, the offering comprised 22 industrial properties, amounting to 1.3 million rentable square feet. The properties are fully leased to 14 investment-grade and other high-quality tenants, spread across 13 states. These sites serve various purposes, including headquarters, manufacturing plants, regional distribution hubs, and strategic rental facilities.

Key tenants involved in the offering play a vital role in the domestic supply chain, according to Four Springs. These tenants include Brenntag, Domino’s, Columbia Gas, International Paper, and New York State Electric & Gas.

William Dioguardi, chairman of Four Springs, commented on the achievement, stating, “As we continue to grow and innovate, the completion of this offering reinforces our commitment to providing our investors with exceptional opportunities in the ever-evolving commercial 1031 real estate landscape.” He noted the strong demand in the industrial sector, driven by e-commerce growth, reshoring of manufacturing, and increased demand for strategically located distribution centers.

Since 2014, Four Springs has sponsored 30 DST programs, totaling over $1 billion, with $500 million syndicated in equity. In March 2024, the company announced the sale of its ownership interest in FSC MRC Odessa TX, DST, a $5.7 million private placement program. Investors in that program reportedly realized a 178% total return.

Four Springs TEN31 Xchange focuses on net-leased, single-tenant commercial properties in the industrial and medical sectors. Four Springs Capital Markets provides tailored solutions for investors, having completed over 1,000 exchanges worth more than $850 million in replacement properties.