BOSTON-Locally based STAG Capital Partners and Menlo Park, CA-based GI Partners is forming a joint venture to purchase single-tenant, net-leased industrial properties nationwide. The JV will dedicate $200 million to this endeavor.

The specificity comes dually from STAG's experience buying and managing these types of properties, as well as the view that there exists opportunity within the secondary and tertiary industrial markets. Alexander Fraser, director of GI Partners tells GlobeSt.com that the companies believe such properties to be "an over-looked and misunderstood property type." There is "potential inefficiency, particularly more to do with creditors getting their arms around" these single-tenant industrial properties. More to the point, they see these inefficiencies as a "compelling opportunity to find risk and create adjusted returns in this market," he explains.

The partnership formed through some previous relationships between the companies, but for GI, Fraser says, STAG represented a "best in class management team which could help grow the company and deploy capital." He noted that STAG has been at this type of investment for the "better part of 10 years. STAG could not comment on future or current acquisitions.