NEW YORK CITY—A group led by American Realty Capital Properties has acquired a net lease portfolio focused on the energy sector. The 2.4-million-square-foot portfolio of 75 single-tenant industrial properties traded for $295 million; the seller was Houston-based Mesa Real Estate Partners LP.
“We assembled these properties over a two-and-a-half year period through build-to-suit development and sale-leaseback transactions with strong energy service companies,” says Mesa’s co-managing partner and president, Tim Horan. “The resulting portfolio is believed to be the largest of its kind in the country.” A real estate attorney, Horan launched the Mesa fund in 2011 to acquire properties in key energy markets.
Given that the properties are leased exclusively to companies in the energy sector, it follows that 80% of the portfolio is located in Texas, including two dozen in the Dallas/Fort Worth Metroplex and another eight in Greater Houston. The remaining properties are located in Oklahoma, Louisiana, Arkansas, New Mexico, North Dakota’s Bakken region, western Pennsylvania and eastern Ohio.
More than 70% of the properties have remaining lease terms of 10 years or longer. All are considered “mission-critical” to their tenants’ operations and revenue streams.
A JLL team of international director John Huguenard and SVP Sean Devaney negotiated the transaction on behalf of Mesa. JLL announced the transaction late Monday afternoon.