The sole purchaser of the issue was Taberna Preferred Funding I Ltd., an institutional investor with a heavy focus on real estate companies, especially REITs. The pooled investment vehicle is managed by Taberna Capital Management, which itself is an affiliate of the Philadelphia-based Cohen Bros. Financial Management. The Baltimore-based Legg Mason Wood Walker Inc. advised Advance, a privately owned company.
The proceeds from the issue will be used for "real estate acquisitions, investments and general corporate purposes," Greg Senkevitch, chief operating officer of Advance Realty Group, tells GlobeSt.com. "This transaction indicates that our company has achieved a broader level of access to the capital markets.
"Trust preferred securities are used by financial institutions to raise low-cost, permanent, long-term capital," Senkevitch continues. "We now have the ability to tap this market on a continuing basis, which is very important as we strategically grow in the Northeast's real estate markets."
Advance Realty is an owner and developer of office, flex, industrial, retail and multifamily projects. The company's holdings currently consists of some five million sf of operating properties, as well as a development portfolio of eight million sf of commercial projects and 9,400 residential units.
A major portion of the company's holdings are in its home state of New Jersey. However, in recent years Advance has established a presence in the metro Washington, DC market, mostly in the office sector, as well as in the Boston metropolitan area marketplace.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
