CBRE Team Arranges $1.3 Billion Sale, Secures $1.1 Billion in Acquisition Financing
CBRE Capital Markets has arranged the sale of a 100-property, 6.8-million-square-foot, triple net lease portfolio located across 20 states, to Atlanta-based Stonemont Financial Group for $1.3 billion.
CBRE’s Guy Ponticiello and James Scott arranged the transaction on behalf of the seller. The portfolio consists of a mix of office, industrial and retail properties with 96% of the net operating income derived from investment grade tenants.
“The credit strength of the tenants, diversification of industries represented, along with asset types and geographies, made the offering one the highest quality net lease portfolios of scale to have hit the market in many years. The interest from international and domestic investors coupled with lending sources drove an exceptional outcome for a seller who has an excellent track record on both the buy side and sell side,” said Mr. Ponticiello, managing director, CBRE Capital Markets.
“You can’t assemble a portfolio with that kind of predictable cash flow and downside protection overnight.” said Mr. Zahr, Managing Partner and CEO of Oak Street Real Estate Capital.
CBRE Capital Markets’ Debt & Structured Finance team secured $1.1 billion in financing for the acquisition of the portfolio. Tom Traynor and James Millon of CBRE’s Midtown Manhattan office, and Peter Marino of CBRE’s Chicago office, secured the loan on behalf of the borrower. Financing was provided at 83% LTV and included a floating-rate CMBS loan and two layers of mezzanine debt. J.P. Morgan Chase provided the financing, along with Deutsche Bank and Barclays as co-lenders.
“Stonemont Financial tapped CBRE to structure, arrange and negotiate one of the largest portfolio transactions in 2017. Our team engineered a capital structure consisting of $800 million of floating-rate CMBS and $274 million of mezzanine financing, in addition to preferred equity. Being able to leverage CBRE’s market leading franchises in Corporate Capital Markets and CBRE Capital Advisors produced maximum proceeds at accretive financing levels for the client,” said Mr. Millon, executive vice president, CBRE Capital Markets.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
