Broadstone JV to Develop $300M Colorado Project

Broadstone Net Lease has formed a joint venture to develop a $303 million, 112,000-square-foot build-to-suit advanced technology facility in Colorado that comes with a long-term lease agreement.

The net lease REIT did not disclose the name of the joint venture partner but said it was an existing development partner. The tenant will be an unnamed Fortune 20 company.

Broadstone anticipates delivery of a powered shell by March 2027, adding the company will become the REIT’s largest tenant at that time.

Broadstone did not respond to requests for more information on the site or joint venture partner. The REIT only noted the selected site offers significant strategic advantages, including proximity to key customers, access to affordable and reliable power and a well-established regional technology ecosystem.

---

READ ALSO: CRE Trends at Mid-Year

---

The triple-net lease has an initial term of 15 years with two five-year extension options and 3 percent annual rent increases. The REIT noted the long-term lease will be accretive to REIT’s 2027 and 2028 earnings.

Calling the deal a landmark moment for its build-to-suit strategy, Broadstone CEO John Moragne said in prepared remarks that the triple-net lease will provide an initial cash yield of 8.5 percent and a straight-line yield of 11.6 percent.

Broadstone stated the site can accommodate a second powered shell building, and the tenant has right of first refusal on any future development. The joint venture owns and controls the land for the full campus, giving the partners options for expansion at the site.

Growing build-to-suit pipeline

In its first-quarter 2026 earnings report, Moragne said Broadstone was committed to growing and strengthening its build-to-suit pipeline. The company stated it had invested $99.4 million in build-to-suit developments, including $21.4 million for two projects started during the first quarter.

Broadstone reported it had acquired a 60-acre industrial campus about 20 miles north of Boston that is occupied by Charles River Laboratories for $61.1 million. The long-term sale-leaseback deal includes a 12-year net lease with annual 3 percent rent increases. The REIT plans to redevelop approximately 48 acres as part of a build-to-suit program and short-term lease partnership with the Sansone Group.

Broadstone also inked two deals with Tesla this year for build-to-suit projects. The first came at the end of the first quarter, when BNL began construction on a $30.4 million build-to-suit development that includes a presort battery recycling facility located about 3 miles from Tesla’s Gigafactory in Austin, Texas. It is expected to reach stabilization by the fourth quarter of 2027.

In June, BNL announced a nearly $40 million build-to-suit project in Las Vegas, Nev., where it will develop a sales, service and delivery center for Tesla. The facility is expected to deliver in the fourth quarter of 2027.

Earlier BTS deals unveiled

In April 2025, Broadstone and Prologis formed a partnership to develop a $78.2 million build-to-suit industrial project in Forsyth, Ga., that will be home to Fiat Chrysler Automotive for 15 years. The 422,000-square-foot facility is slated for delivery this summer. Located roughly 62 miles southeast of downtown Atlanta, the construction site is close to Interstate 75 and U.S. Route 41.

Also last year, Broadstone added three new development projects totaling $61.4 million in July to its build-to-suit pipeline. The deals added two new developer relationships and expanded on an existing partnership.

The projects, all set to deliver in the third quarter of 2026, included an industrial distribution warehouse for AGCO Corp. in California’s Central Valley and a distribution warehouse in the Dallas MSA for Palmer Distribution Services. The construction of a new grocery store for Sprouts Farmers Market in the Dallas region is the third project.