Sealy Industrial Partners IV Expands Portfolio

New acquisitions and a major refinancing deal shaped a busy third quarter as the firm eyes continued growth.

November 11, 2025

Acquisitions Lead the Way

Sealy Industrial Partners IV kept up its momentum in Q3 2025, building on its acquisition strategy while navigating rising costs and shifting market conditions. Total revenue climbed 81% year-over-year, fueled by property additions and strong portfolio performance. At the same time, the firm saw a swing to a net loss, with higher debt costs and operating expenses taking a front seat.

The story this quarter was growth. Sealy added a 413,000 square foot industrial property in Dallas for $38.2 million, pushing the firm’s total portfolio to 21 properties across eight states. These properties now total about 5.1 million square feet, leased to 35 tenants. Occupancy as of September 30 stood at 100%, with average remaining lease terms of just over four years.

Revenue followed suit. New acquisitions accounted for the bulk of the increase, contributing $6.4 million in Q3 alone. Same-store properties saw modest growth, and one previously vacant unit was successfully re-leased.

Operating Costs Outpace Gains

The jump in revenue was met with equally notable cost increases. Depreciation and amortization nearly doubled year-over-year. Property taxes and insurance rose 95%, driven by both new assets and reassessments. General and administrative expenses also moved higher, reflecting the costs of operating as a public reporting entity and recent legal and compliance work.

The biggest shift came from interest expense. Sealy reported $1.8 million in Q3 interest costs, up from just $144,000 the prior year. That change reflects a higher average debt balance, including usage of the revolving credit facility earlier in the quarter.

Bottom line: net income moved into negative territory, with a $1.4 million loss for the quarter and $1.6 million year-to-date. For comparison, the firm posted a modest profit in both periods last year.

Term Loan and Facility Extension Expand Liquidity

In September, Sealy secured a new $105.2 million term loan from Thrivent Financial. Proceeds were used to repay $76.5 million in revolving credit and provide added flexibility for upcoming initiatives. Interest on the loan is fixed at 5.39%, with maturity set for October 2030.

The firm also amended its agreement with KeyBank to extend the maturity date on its revolving credit facility to November 2025, with options to push it further into 2026. As of quarter-end, $13.0 million was drawn, leaving $87.0 million in remaining availability.

Capital Activity and Redemptions

Fundraising continued through the Private Offering, which brought in $14.5 million in the third quarter. The firm issued 160,271 units across its three classes. Meanwhile, it processed redemptions totaling 5,746 units, all priced at $90.25 per unit.

Subsequent to quarter-end, the firm repurchased more than 443,000 Class I units from two investors in a negotiated transaction totaling $39.5 million. Those units have been cancelled.

Looking Ahead

Sealy continues to focus on sourcing opportunities for high-quality industrial assets at attractive pricing. Management expects to use capital proceeds, refinancing, and select asset sales to meet near-term liquidity needs, including the $40.5 million in debt maturing within 12 months.

While higher interest rates and inflation remain headwinds, the firm is positioned to continue its acquisition strategy. The outlook calls for measured growth, with operating performance shaped by future lease activity, market conditions, and capital availability.