Brennan, Arch Street Close Out $300M Net Lease Fund with True Value Facility Purchase
The deal for the facility marks the 10th and final acquisition in a Brennan-Arch Street in its current single-tenant, net lease industrial aggregation venture. Brennan and Arch Street report they are launching an eighth venture—USIPA – Brennan Ventures III.
HARVARD, IL—A joint venture of Brennan Investment Group, LLC of Chicago and Greenwich, CT-based Arch Street Capital Advisors, LLC has acquired the 1.3-million-square-foot distribution facility at 308 South Division St. here that is 100% leased to True Value Co.
The deal for the facility marks the 10th and final acquisition in a Brennan-Arch Street in its current single-tenant, net lease industrial aggregation venture. Brennan and Arch Street report they are launching an eighth venture—USIPA – Brennan Ventures III—that will seek single tenant, net leased industrial investments. Financial terms of the transaction were not disclosed.
The new fund is looking for investments that are located in the top 100 U.S. markets; have a remaining lease term of at least 10 years; have non-investment grade credits and are “mission critical” properties with significant facility investment by the tenant. The venture will also seek to acquire all industrial facility types, including manufacturing, assembly, R&D and distribution facilities.
“The acquisition of the True Value facility was funded through our $300-million net lease joint venture with one of Arch Street Capital Advisors’ institutional clients,” says Robert Vanecko, Brennan Investment Group’s managing principal and the head of the firm’s single-tenant, net lease division. “We are excited to complete our final acquisition in this portfolio, which totals over 3.4 million square feet, and look forward to launching a new aggregation venture with Arch Street.”
True Value has occupied the South Division St. complex since 1998.
“We look forward to continuing our long and successful partnership with the Brennan Investment Group and the launch of our next aggregation venture. Our institutional client base is focused on investment opportunities in the single-tenant, net-leased, industrial sector due to the strong industrial real estate fundamentals and mission-critical nature of the individual assets,” says Gautam Mashettiwar, VP of Arch Street Capital Advisors, LLC.
Since 2010, Brennan Investment Group and Arch Street Capital Advisors, on behalf of an institutional client, have acquired 100 single-tenant properties totaling more than 20 million square feet, in seven separate joint ventures. Brennan and Arch Street’s activity in the single-tenant, net lease sector includes: USIP – Brennan Ventures I – a 20-property portfolio, comprising 2.4 million square feet leased to 12 tenants across 13 states; USIP – Brennan Ventures II – a 19-property portfolio, comprising 3.9 million square feet leased to 16 tenants across 13 states; USIP – Brennan Ventures III – a 24-property portfolio, comprising 3.4 million square feet leased to 20 tenants across 13 states; USIPA – Brennan Ventures I – an 11-property portfolio, comprising 2.7 million square feet leased to nine tenants across seven states; USIPA – Brennan Ventures II – a 10-property portfolio, comprising 3.4 million square feet; SIP – Brennan Ventures – an 11-property portfolio, comprising 2.5 million square feet and BIP – Brennan Ventures – a four-property portfolio, comprising 2.3 million square feet.
Earlier this month, Brennan Investment Group sold of a 182,298-square-foot, industrial portfolio at 1900-2000 Carboy Drive in Mount Prospect, IL to San Francisco-based Glen Una Management Co. according to a report in RE Journals. Avison Young represented Brennan in the transaction. Financial details of the transaction were not disclosed.