How the RealtyMogul Platform Brought This Industrial Opportunity to Accredited Investors
The FedEx Bismarck investment represents a core expression of how The Wideman Company approaches industrial real estate: mission-critical facilities, long-duration income, conservative basis, and alignment of capital. The asset is a newly constructed, 217,323 square foot FedEx Ground facility located in Bismarck, North Dakota, acquired at a meaningful discount to replacement cost and leased on a long-term triple-net basis to an investment-grade tenant.
At acquisition, the property was fully stabilized, encumbered by a long-dated lease, and positioned to generate durable cash flow with limited operational complexity. Since closing, the asset has remained fully leased and has performed in line with underwriting, distributing consistent cash flow while maintaining contractual rent growth embedded later in the lease term.
This investment was originated and sponsored by The Wideman Company prior to our acquisition of the RealtyMogul platform and reflects the same underwriting standards we have applied across decades of industrial ownership.
The Wideman Company, a family-owned commercial real estate firm with nearly 50 years of operational experience, leads a collective of real estate operators that have acquired the RealtyMogul platform. This transition brings The Wideman Company’s longstanding cultural values of Honor, Service, and Stewardship to the platform and its community of over 300,000 registered members.
Why Did The Wideman Company Select This Asset?
The Investment Thesis
The Wideman Company identified this property based on several key characteristics that aligned with their disciplined, cash flow-focused investment philosophy:
| Factor | Details |
| Tenant Quality | FedEx Ground (subsidiary of FedEx Corp.), investment-grade credit rating |
| Lease Structure | Triple Net (NNN) with 9 years remaining at acquisition |
| Facility Age | Constructed in 2022, modern specifications with 32’ clear heights and 66 loading doors |
| Acquisition Pricing | 6.80% cap rate, representing a 14% discount to estimated development cost |
| Location | Strategic Midwest logistics hub, 3 miles from I-94 and adjacent to BNSF rail freight |
How Does This Fit FedEx’s Operations?
The Bismarck facility supports FedEx’s broader Network 2.0 initiative, a company-wide effort to optimize logistics efficiency and reduce long-term operating costs. Assets that serve these internal optimization strategies tend to be prioritized within the tenant’s real estate footprint, reinforcing lease durability and renewal probability over time.
While no tenant is immune to macroeconomic pressure, we underwrite assets that remain relevant to how tenants actually operate, not merely where they happen to lease space.
Current Investment Status
Since closing, the FedEx Bismarck investment has performed as follows:
- Occupancy: Property has remained 100% leased to FedEx Ground.
- Distributions: Currently distributing 7% annually on investor equity.
- Cash Flow: Investment has remained cash flow positive.
- Rent Growth: Contractual rent increases are scheduled to begin in 2028.
This performance reflects the characteristics of NNN-leased industrial properties with creditworthy tenants: predictable income streams supported by long-term lease obligations.
Current performance does not guarantee future results. Real estate investments are speculative and involve substantial risk. Any current or historical distributions are not guaranteed and may be reduced, suspended, or eliminated at any time. Distribution rates reflect past or current conditions and do not represent a guarantee of future cash flow or investment performance.
How Was This Deal Structured for Investors?
Capital Stack Overview
The investment was structured with the following capital components:
| Component | Amount | Details |
| Senior Debt | $23,176,500 | 60.7% LTV, 6.28% fixed rate, 60-month term |
| Preferred Equity | $3,000,000 | 2.5% PIK structure |
| LP Equity | $12,373,650 | RealtyMogul investor participation |
| GP Equity | $1,374,850 | Sponsor co-investment |
| Total Acquisition | $38,187,800 | $176 per square foot |
Distribution Waterfall
Investor returns follow a structured waterfall designed to prioritize LP capital:
- First tier: 7.0% IRR preferred return distributed pari passu between LP and GP
- Second tier: 75% to LP / 25% to GP until 14.0% IRR achieved
- Third tier: 50% to LP / 50% to GP for returns above 14.0% IRR
This structure means the sponsor’s promoted interest increases only as investor returns exceed defined thresholds, a mechanism that can create alignment between sponsor and investor outcomes.
Understanding the Triple Net (NNN) Lease Structure
In a Triple Net lease agreement, the tenant assumes responsibility for property taxes, insurance, and maintenance and repairs, in addition to base rent.
For investors, NNN leases can reduce operational variability because the tenant, not the property owner, bears the cost of these expenses. When the tenant holds investment-grade credit, as FedEx Corp. does, this structure may provide a level of income predictability not found in other lease types.
NNN leases do not eliminate investment risk. Tenant defaults, market shifts, and property-specific issues can still impact returns.
Bringing This Opportunity to Investors via the RealtyMogul Platform
Prior to real estate investment platforms like RealtyMogul, investments of this type were typically accessible only to institutional investors or high-net-worth individuals with direct sponsor relationships and significant capital requirements.
Through RealtyMogul’s platform, accredited investors gained access to:
- Lower minimums: $35,000 minimum investment
- Consolidated reporting: Portfolio tracking, distributions, and tax documents through a single portal
- Sponsor vetting: The Wideman Company’s 50+ year track record and 120+ property portfolio evaluated as part of the offering process
Considerations for Evaluating Industrial Real Estate Investments
When reviewing industrial investment opportunities, investors may wish to consider:
- Tenant creditworthiness: What is the tenant’s financial strength and business stability?
- Lease term remaining: How much time remains before lease renewal or expiration?
- Location fundamentals: Does the property serve critical logistics infrastructure?
- Sponsor experience: What is the sponsor’s track record in similar assets?
- Capital structure: How is debt positioned relative to property value?
Reflections on the FedEx Bismarck Case Study
The FedEx Bismarck investment is not notable because it is complex or opportunistic. It is notable because it is simple, disciplined, and repeatable.
This case study reflects the type of industrial exposure we have historically favored: modern logistics facilities, conservative basis, long-term leases, and tenants whose operations depend on the real estate itself. That philosophy continues to guide both our balance-sheet investments and the opportunities we bring to partners and co-investors today.
This article is for informational purposes only, and is not a recommendation or offer to buy or sell securities. Information herein may include forward-looking statements and is for informational purposes only. Forward-looking statements, hypothetical information, or calculations, financial estimates, and targeted returns are inherently uncertain. Past performance is never indicative of future performance. None of the opinions expressed are the opinions of RealtyMogul. Advice from a securities professional is strongly advised, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks and tax consequences associated with any real estate investment. All real estate investments are speculative and involve substantial risk and there can be no assurance that any investor will not suffer significant losses. A loss of part or all of the principal value of a real estate investment may occur. All prospective investors should not invest unless such prospective investors can readily bear the consequences of such loss.
RealtyMogul and its affiliates are not registered as a crowdfunding portal. Unless stated otherwise in writing, RealtyMogul and its affiliates do not offer brokerage or investment advisory services to the Platform’s individual users. RM Adviser, LLC, a wholly owned subsidiary of RealtyMogul, is a SEC-registered investment adviser providing investment management services exclusively to certain REITs and single purpose funds. Past performance is not indicative of future results. Forward-looking statements, hypothetical information or calculations, financial estimates, projections and targeted returns are inherently uncertain. Such information should not be used as a primary basis for an investor’s decision to invest. Investments in real estate, including those offered by sponsors using the RealtyMogul platform, are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital.