Baar-Zug, 30 July 2012
Partners Group, the global private markets manager, has invested in preferred equity on behalf of its clients for the acquisition of a multi-tenant industrial property in the Dallas, Texas metro area, which is one of the strongest regional economies in the US.
The property is leased to both regional and national tenants, primarily comprising distribution/logistics companies. The property offers lease-up potential with a mix of warehouse and freezer/cooler space, with leases typically below market, presenting an attractive value-added opportunity. In addition, the transaction is capitalized with a significant tenant improvement and leasing commission reserve that is available for leasing the building.
Eliza Bailey, Head of Private Real Estate Debt at Partners Group, comments, “We are very excited to have invested in this attractive opportunity for our clients. The investment provides downside protection from the preferred equity structure combined with significant upside potential driven by the low entry basis and the lease-up opportunity at the property. The property includes characteristics which we favor based on our current relative value assessment: quality real estate leased to a diverse group of creditworthy tenants in a strong location with positive economic momentum. We are also pleased to again be working with our operating partner, Westmount Realty Capital, who has been investing in value-added industrial properties in Texas since the early 1990s.”