The properties are located in Berlin, Frankfurt, Dusseldorf, Wiesbaden, Eschborn and Sulzbach and have an average age of less than 10 years. The holdings total 190,600 sm. The portfolio has stable cash flows with an average lease term of seven years and more than 80% of rents generated from major corporate tenants. An initial occupancy rate of 93% gives an opportunity for future income growth.

Eurocastle is a closed-end investment company that focuses primarily on German commercial real estate assets and real estate-related debt. It is managed by Fortress Investment Group, a global alternative-investment and asset-management firm with more than $23 billion in equity capital currently under management.

"This transaction brings us to a total of euro 840 million ($1 billion) of acquisitions this year," says Bruce Snider, Fortress managing director. "We are well on our way to achieving our euro 1 billion target ($1.28 billion) of new investments for the year."

According to Guido Piñol, another Fortress MD who heads the firm's German acquisitions push, the deal fits the model. "This acquisition fits our strategy of acquiring high-quality commercial real estate let to credit tenants with an opportunity for significant value creation through active management," he concludes.