DENVER—A partnership involving Northstar Commercial Partners and ALTO Real Estate funds has spent $224 million for 24-property portfolio amassed by a New York private investor.
Denver-based Northstar, a 16-year-old investment firm, and ALTO, a US firm that invests capital raised in Israel, hope to add value to the portfolio, which they say has an overall vacancy of 40%.
The property includes office, retail and industrial buildings in 12 states. It was compiled by Moshe Silagi, an Israeli immigrant who moved to the US in 1976.
“A lot of the buildings are in markets that haven't felt the improvement in the economy,” said Northstar's chief executive Brian Watson, in an article in the Wall Street Journal.
The former Cushman & Wakefield broker says the said the venture with ALTO plans to increase occupancy and cash flow and then sell to institutional buyers.
“We're buying by the pound and selling off by the ounce,” he said.
The seller, who is 69 years old, said he is selling the properties to reduce debt and to provide himself more free time. But he told The Journal he will continue to hold properties in Colorado and Hawaii.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
