ST. LOUIS—ElmTree Funds, which was launched inSt. Louis in 2011, recently closed on ElmTree Net LeaseFund II, its sixth net lease private equity fund, and itjust completed the acquisition of five single-tenant net leaseinvestment properties, totaling $90.3 million. All of theproperties are either currently occupied under, or have commitmentsfor, 10- to 15-year lease agreements.

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As reported in GlobeSt.com, ElmTree typically invests in single tenant, investment-grade netlease real estate assets, sale leasebacks, andbuild-to suits with tenant lease terms of 10 to 15 years. Companyofficials say ElmTree Net Lease Fund II will eventually acquire abillion dollars of net lease assets.

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Among the acquisitions is a 34.4-acre industrial property inFort Wayne, IN. BAE Systems Controls, a subsidiaryof BAE Systems plc, will lease the property anduse it as a light assembly and warehousing facility. Thebuild-to-suit project will consist of the development andconstruction of an approximately 333,750-square-foot manufacturingbuilding. BAE Systems has operated in Fort Wayne since themid-1980s. The company will use the plant, scheduled to becompleted in late 2015, to build electronic controls for aircraftengines.

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ElmTree also acquired four office properties in Ohio, SouthCarolina, Minnesota and Alabama.

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These include a 100,800-square-foot single-tenant facility inColumbus, OH. Alliance Data Systems has occupiedthe building, which sits on almost 10 acres at 220 W. Schrock Rd.,since 1991. ADS serves clients such as LimitedBrands, Abercrombie & Fitch andLane Bryant. The office houses 900 employees andcurrently serves as the national control center for customer care.In 2006, the ownership spent about $2.2 million on propertyimprovements and is currently revamping the data center.

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A 39,794-square-foot, single-tenant facility, was also acquiredby ElmTree in Lexington, SC. Carolina First Bankhas occupied the building, which sits on a 3.72-acre land parcel,since 2011. The bank invested over $1 million after first takingpossession of the property, which currently houses the bank's UScompliance operations.

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ElmTree also acquired a 75,601-square-foot, single-tenantfacility in Arden Hills, MN. UTC Fire &Security, a wholly owned subsidiary of UnitedTechnologies Corp., has occupied the property under alease agreement that began in 2004. The two-story, class B officebuilding was constructed in 1986. UTC Fire & Security providesfire safety and security solutions to both US and internationalcustomers. The property sits on a five-acre land parcel nearseveral large corporate headquarters such as BostonScientific and Land O'Lakes.

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Finally, ElmTree also acquired a 66,500-square-foot office andcall center located on an 8.8-acre land parcel in Birmingham, AL.T-Mobile South, a fully owned regional subsidiaryof T-Mobile US, Inc., currently occupies theproperty. It will undergo a $6 million renovation to suitT-Mobile's long-term needs, with completion of the renovationsexpected in early 2015. The call center employs around 500full-time employees, and T-Mobile South plans to hire an additional100 employees by 2015.

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.