Lear Corporation - Upcoming Increase to 8% CAP
Industrial | 7.25% CAP | 125,704 SqFt
Marketing description
1250 Commerce Drive presents the opportunity to acquire a high-quality industrial asset leased to Lear Corporation (NYSE: LEA), an investment-grade (BBB - S&P) global automotive supplier, at an attractive 7.25% cap rate and $7,854,124 purchase price.
The Property is occupied by Lear Corporation (NYSE: LEA) as a mission-critical facility supporting a combination of distribution, logistics, sequencing, and light manufacturing operations within its global automotive supply chain. The building’s functional layout and strong infrastructure support efficient warehousing and distribution, while also accommodating on-site manufacturing processes, including wire bending for seat cushions and foam work utilizing high-tension wire. The facility services Lear’s nearby Farwell plant, which operates within the company’s Seating division and is utilized for the manufacturing and processing of foam seating components used in automotive seat
systems supplied to major OEMs. As a result, the Property plays a direct role in supporting production and supply chain continuity, further reinforcing its mission-critical nature and long-term tenancy stability.
Lear Corporation is a Fortune 500 company generating approximately $23.3 billion in annual revenue, with long-standing relationships with major OEMs including Ford, General Motors, and BMW. The company maintains an investment-grade credit rating (BBB / Baa2), supported by its global scale, diversified operations, and critical role in the automotive industry.
The 125,704-square-foot Class A industrial facility was constructed in 2007 and is well suited
for modern warehouse, distribution, and light manufacturing use. The building features a 34-foot clear height, 10 dock doors, 3 grade-level doors, and approximately 5,900 square feet of dedicated office space. The facility also includes strong electrical infrastructure and is situated on a 7.6-acre site with ample parking, trailer storage, and a secure, fenced-in yard.
Strategically located in Central Michigan, the Property offers immediate access to US-10, US-127, and M-115, providing efficient connectivity to key Midwest markets including Detroit, Grand Rapids, and Lansing. The location is further supported by proximity to rail access and is within one hour of MBS International Airport, enhancing overall distribution capabilities.
Investment highlights
- New 8-year lease with Lear Corporation (NYSE: LEA), an investment-grade (BBB - S&P) global automotive supplier, providing stable and reliable income through February 2033.
- Lear Corporation is a Fortune 500 company generating approximately $23.3 billion in annual revenue, with long-standing relationships with major OEMs including Ford, General Motors, and BMW, reinforcing tenant strength and long-term viability.
- Attractive 7.25% cap rate offering above-market yield for an investment-grade tenant, presenting a compelling risk-adjusted return relative to other net lease opportunities.
- Directly Supports Nearby Lear Manufacturing Facility - The property serves as a critical extension of Lear's Farwell operations, supporting a combination of light manufacturing, sequencing, and warehousing functions. On-site processes include wire bending for seat cushions and foam work utilizing high-tension wire, directly tied to Lear's Seating division, which produces foam seating components for major automotive OEMs. This integration reinforces the asset's mission-critical role within Lear's supply chain and enhances long-term tenancy stability.
- Double net (NN) lease structure with tenant responsible for taxes, insurance, and CAM, minimizing landlord responsibilities while maintaining control over roof and structure.
- Brand New Roof in 2025 with 20 Year Warranty
- Built-in rent escalations with income growing from $569,424 to $628,520 in 2027 and $659,925 in 2030, providing steady NOI growth and inflation hedge.
- No renewal options remaining, creating future upside through mark-to-market leasing or repositioning at lease expiration.
- 125,704 square foot Class A industrial facility featuring 34' clear height, heavy power (2,000A currently available with capacity to upgrade to 4,000A / 480V 3-phase), 10 dock doors, 3 grade-level doors, and approximately 5,900 square feet of office space.
- Situated on a 7.6-acre site with ample parking, trailer storage, and a secure, fenced-in yard, ideal for manufacturing, distribution, and logistics users.
- Strategically located in Central Michigan with immediate access to US-10, US-127, and M-115, allowing efficient connectivity to major markets including Detroit, Grand Rapids, and Lansing.
- Proximity to rail access and within one hour of MBS International Airport enhances logistics capabilities and distribution efficiency.
- Supported by a strong regional labor base and proximity to major manufacturing corridors, making this a highly functional and desirable industrial location.
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