Lippert Components Manufacturing Campus
MISSION-CRITICAL MANUFACTURING CAMPUS I 42-YEAR OPERATING HISTORY
Marketing description
The Lippert Components Manufacturing Campus offers investors the opportunity to acquire a 100% leased, 204,485-square-foot industrial facility in Brandon, South Dakota, immediately adjacent to the expanding Sioux Falls regional market. The property serves as a mission-critical manufacturing campus for Lippert Components, featuring specialized infrastructure and production lines that support the company's commercial-grade truck accessory and towing-system brands. Lippert Components recently agreed to a 5-year renewal option at a substantial rent increase, reinforcing the tenant's long-term commitment to the site and the asset's highly sticky real estate profile. That tenancy is further supported by ultimate parent LCI Industries, Inc. (NYSE: LCII), an S&P BB- rated, publicly traded platform with approximately $4.1 billion in annual revenue and a global footprint of more than 140 facilities.
This investment combines secure in-place cash flow, embedded growth, and future mark-to-market upside. The asset is fully leased through December 2030 and benefits from 3.5% annual rent escalations, creating compounding revenue growth and a built-in hedge against inflation. In addition, current contract rent remains roughly 22% below market, positioning investors for meaningful upside at lease rollover. Less than a half-mile from Interstate 90, the campus provides efficient access to major Midwestern distribution corridors while benefiting from South Dakota's favorable business climate and regional manufacturing labor base. The result is a low-maintenance industrial asset backed by a scaled corporate tenant with durable operating relevance in the market.
Investment highlights
- The campus is 100% occupied by Lippert (S&P: BB-) through 2030. Since acquiring Curt in 2019, Lippert has executed two renewals with significant rent increases, demonstrating a highly sticky, long-term commitment to the site from an exceptionally well-capitalized parent company.
- Custom-built for the tenant in 1984, the facility boasts a 42-year operating history. With $20–$30M in asset-specific bolt-down costs and a highly specialized layout, the site is integral to their operations, rendering relocation risk virtually nonexistent compared to commodity warehousing.
- Current in-place rent sits 22% below market rents of $7.75/SF, presenting a clear opportunity to capture substantial upside upon renewal.
- The passive NNN lease features contractual 3.5% annual rent growth, which compounds the property's yield while serving as an excellent contractual hedge against inflation.
- Acquisition delivers an attractive 7.5% Year 1 cap rate on a fully occupied, 204,485 SF single-tenant NNN campus, providing immediate scale and predictable revenue with zero near-term lease-up risk.
- Located less than a half mile from I-90 and 10 miles from I-29, the asset enjoys premier Upper Midwest distribution access within a highly constrained Brandon submarket averaging a tight 1.8% vacancy rate.
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