KKR Launches $3B Net Lease Platform Having Recruited W.P. Carey Team

KKR has launched a new platform to invest in a diversified portfolio of triple-net lease real estate. Called Strategic Lease Partners, the platform will seek to acquire over $3 billion in assets. The company has recruited net lease veterans Andrés Dallal and Joseph Mastrocola, who are joining as partners.

Dallal and Mastrocola were executive directors at W.P. Carey, where they were responsible for sourcing, evaluating, negotiating and structuring net lease investments in North America. 

Also joining from W.P. Carey:  Andrew Huizenga as VP and Daniel Hanan as chief counsel. 

Although the company has invested in the net lease asset class before, this is KKR’s first dedicated net lease initiative. 

The platform will primarily be transacting sale leasebacks with a focus on the industrial asset class, Dallal tells GlobeSt.com.

“This is a diversified platform but our focus will be on industrial. In our opinion industrial real estate, especially manufacturing buildings, tend to be critical to a company’s operations. Our mandate is mission-critical corporate real estate.” The platform will also invest in distribution and logistics buildings, and occasionally office, retail and certain specialized assets such as medical and lab applications, he adds.

The platform will emphasize long term leases and sub investment grade tenants, Mastrocola tells GlobeSt.com. “Given our close relationship with the KKR credit business,  that will give us a competitive advantage with underwriting expeditiously companies that are less than investment grade.” 

Dallal and Mastrocola declined to discuss the platform’s investment timeline or its pipeline. They did note that, as a full team, they are ready to start transacting deals immediately. “We have the infrastructure in place to be an active player after Labor Day,” Mastrocola says. They expect to be actively closing deals in the fourth quarter, he adds.