Real Client Investment Experiences - Success Stories with CAI’s DSTs

Investors seeking stability and consistent returns often find their objectives fulfilled through CAI Investments’ Delaware Statutory Trust (DST) offerings. By focusing on mission-critical properties and long-term leases with creditworthy tenants, CAI has demonstrated its ability to deliver consistent, compelling results for clients. This blog highlights several real-world examples of how CAI’s strategic approach has led to successful outcomes for investors.

Manufacturing Essential Asset II, DST (MEA II)

In September 2024, CAI Investments acquired a 96,000-square-foot industrial facility in Honea Path, South Carolina, through a strategic sale-leaseback transaction with U.S. Medical Glove Company, LLC (USMG). As the only U.S.-based chemical manufacturing plant capable of producing polyisoprene—a critical component in latex-free surgical gloves—USMG’s operations align with national priorities for domestic industrial capabilities.

Key Highlights:

• Tenant: U.S. Medical Glove Company, LLC.
• Stability: Long-term lease with a mission-critical manufacturer.
• Strategic Alignment: Supports domestic production in a vital healthcare sector.

For investors, this acquisition underscores CAI’s commitment to assets that combine financial reliability with broader economic and social significance.

Manufacturing Essential Asset I, DST (MEA I):

In March 2024, CAI transitioned its $182 million DST offering of a 1.5 million-square-foot facility into a Regulation D 506(c) offering. The facility serves as the global headquarters for the U.S. Medical Glove Company, further solidifying its role in addressing domestic demand for FDA-approved surgical and medical gloves.

Key Highlights:

• Scale: A 1.5 million-square-foot state-of-the-art facility.
• Income Stability: Long-term lease agreements ensure reliable cash flows for investors.
  
• Flexibility: Transition to a Regulation D offering expands investment opportunities.

Lake Forest Global Headquarters, DST:

CAI’s Lake Forest DST showcases its expertise in acquiring and managing premier properties. This 225,000-square-foot corporate headquarters, located in Conway Park, Illinois, is leased to Pactiv, LLC, a subsidiary of Pactiv Evergreen, Inc. With a global reach and $3.5 billion in revenue, Pactiv operates over 50 manufacturing and distribution facilities.

Key Highlights:

• Tenant: Pactiv, LLC, a leader in foodservice packaging.
• Lease Structure: A 12-year absolute NNN lease with annual rent escalations.
• Location: Situated in a high-demand area with excellent access to infrastructure.

Investors benefit from the combination of a financially stable tenant and a prime location in a prestigious business hub.

North Carolina Industrial Property

CAI’s 470,000-square-foot manufacturing facility in Statesville, North Carolina, reflects the company’s focus on securing dependable income streams. The property, occupied by Kewaunee Scientific Corporation (NASDAQ: KEQU) since 1955, is supported by a 20-year lease with annual rent increases. Kewaunee serves major clients like Chevron, Johnson & Johnson, and Procter & Gamble, providing essential products for laboratories and healthcare facilities.

Key Highlights:

• Tenant Stability: Long-standing occupancy and lease renewal reflect tenant confidence.
• High-Quality Client Base: Products are supplied to globally recognized brands.
• Strategic Location: Access to freeways and rail transportation enhances operational efficiency.

This offering demonstrates CAI’s ability to identify assets with stable income potential and strong tenant relationships.

The Westin Tempe Hotel

Expanding beyond industrial and manufacturing, CAI developed The Westin Tempe, a 17-story hotel that has become a premier destination since its opening in 2021. With a 4-diamond AAA rating and award-winning features like the Skysill Rooftop Bar, the property reflects CAI’s ability to deliver value in diverse real estate sectors.

Key Highlights:

• Market Differentiation: Recognized for excellence in hospitality and design.
• Performance: The property’s success contributes to diversified income streams for investors.
• Community Impact: Adds to the vibrancy of the Phoenix/Tempe area.
  

This project underscores CAI’s versatility and ability to create value across asset classes.

Why These Success Stories Matter to Investors

1. Stability Through Strong Tenants: Long-term leases with creditworthy tenants ensure consistent returns.
2. Strategic Asset Selection: CAI prioritizes mission-critical properties and essential industries to mitigate risk.
3. Diverse Portfolio Opportunities: From industrial facilities to hospitality projects, CAI offers investors a range of income-producing assets.

For advisors, these success stories provide compelling examples to share with clients, showcasing the reliability and effectiveness of CAI’s investment strategy.

Conclusion

CAI Investments has built a reputation for delivering consistent returns and stability through its DST offerings. By focusing on mission-critical properties and partnering with dependable tenants, CAI can help ensure that investors benefit from well-positioned, high-quality assets. Whether it’s the industrial strength of U.S. Medical Glove’s facilities or the prestige of The Westin Tempe, CAI’s strategic approach continues to create opportunities for success.