NexPoint Achieves Successful Subscription for Second Small Bay Industrial Investment
On February 11, 2025, NexPoint, a prominent multibillion-dollar alternative investment firm, revealed that it has successfully fully subscribed its Small Bay II Delaware Statutory Trust (DST) offering. This significant achievement marks a noteworthy milestone for the firm, which has proven adept at navigating the evolving real estate market.
The Small Bay II DST is primarily composed of two small bay industrial properties located in the rapidly growing city of Orlando, Florida. This offering reached its ambitious funding goal of $38.8 million in equity, which has been raised since its launch in July 2024. The two properties included in this DST offering are impressively designed to cater to a variety of industrial needs: The Lakefront Property, encompassing a total of 192,767 square feet of flex and multi-tenant industrial space across four distinct buildings, and The Belle Property, which boasts 186,162 square feet allocated among 13 recently renovated small bay industrial buildings.
These properties reap the benefits of being situated in a high-growth metropolitan area recognized for its superior income levels, educational opportunities, and employment rate. As the demand for versatile industrial, office, and warehouse space continues to ascend in this dynamic region, NexPoint’s investments through the Small Bay II DST are strategically positioned to meet market needs.
Matt McGraner, the Chief Investment Officer of NexPoint and Executive Vice President of the DST Sponsor, shared insight into the firm's confidence in the small bay industrial sector. He stated, "The flexibility of use and the advantageous supply/demand dynamics make the small bay sector well-positioned for growth in 2025." His comments underscore the necessity for adaptable spaces as businesses evolve in response to market demands.
NexPoint's commitment to this sector is underscored by its previous successful offering. The company initially launched its first small bay industrial DST in 2023, known as Small Bay I, which successfully raised $59.5 million. For both of its small bay offerings, NexPoint has collaborated with Basis Industrial, a privately held and vertically integrated real estate owner and operator, to ensure sustained growth and performance of these industrial assets.
About NexPoint
NexPoint is a Dallas, Texas-based investment firm managing a multi-billion-dollar portfolio focusing on real estate, corporate credit, and equities, in addition to insurance solutions. Their diverse strategies encompass a range of assets and capitalize on various market conditions, providing clients with tailored investment opportunities through numerous vehicles—including mutual funds, public and private REITs, and private funds.
About Basis Industrial
Basis Industrial, co-founded by industry veterans, emphasizes a comprehensive approach to real estate ownership and management. Currently, Basis owns over 2.5 million square feet of self-storage and industrial spaces and is on track to acquire an additional one million square feet in 2023. Active across several states including Florida, Pennsylvania, New Jersey, and Texas, Basis aims to grow its footprint in key urban markets across the nation.
As demand for flexible industrial spaces increases, NexPoint and Basis Industrial’s strategic partnership positions them well to capitalize on emerging opportunities in the market. However, potential investors are reminded that investments in Delaware Statutory Trusts involve risks, with opportunities best suited for accredited investors who understand the speculative nature of this market. Further disclosures encourage careful consideration of investment risks and have outlined the significant potential for both gains and losses before committing to these investment vehicles.
For more comprehensive information on investing with NexPoint or their ongoing projects, you can visit their website at nexpoint.com.