In the second half of December, Mesirow Sale-Leaseback Capital sold two structured credit tenant, net-leased properties to private buyers.

Together, the transactions, which included an on-airport Amazon distribution center, totaled more than $570 million in value and 1.4 million square feet.

While Avison Young, which closed the deals, was restricted from sharing broader details of the transactions,  Jonathan Hipp, head of US Net Lease Group, tells it was unique because it was a zero-cash flow deal—meaning the rent the buyer receives is equal to what it will pay on its mortgage. The structure only works if the tenant has strong credit and is on a long-term lease, which allows the buyer to put maximum leverage on the property.

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Leslie Shaver

Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to and Real Estate Forum.