BOSTON-Locally based STAG Capital Partners and Menlo Park,CA-based GI Partners is forming a joint venture to purchasesingle-tenant, net-leased industrial properties nationwide. The JVwill dedicate $200 million to this endeavor.

The specificity comes dually from STAG's experience buying andmanaging these types of properties, as well as the view that thereexists opportunity within the secondary and tertiary industrialmarkets. Alexander Fraser, director of GI Partners tellsGlobeSt.com that the companies believe such properties to be "anover-looked and misunderstood property type." There is "potentialinefficiency, particularly more to do with creditors getting theirarms around" these single-tenant industrial properties. More to thepoint, they see these inefficiencies as a "compelling opportunityto find risk and create adjusted returns in this market," heexplains.

The partnership formed through some previous relationshipsbetween the companies, but for GI, Fraser says, STAG represented a"best in class management team which could help grow the companyand deploy capital." He noted that STAG has been at this type ofinvestment for the "better part of 10 years. STAG could not commenton future or current acquisitions.