DALLAS-Approximately three months after State Farm Inc.'s operations centers portfolio came to market, locally based Lone Star Funds acquired the assets through a sale-leaseback agreement. The portfolio consists of 23 operations centers, consisting of 6.2 million square feet and located in 16 states.
The sales price was not disclosed and the locations of the operations centers were not immediately made available.
“There is currently tremendous investor appetite for large net-leased portfolios with investment-grade credit,” says Gary Nussbaum, managing director of Transwestern. Nussbaum and Transwestern managing directors Brad Cohen, Larry Thiel and Thomas Gorman and senior associate Dave Matheis represented State Farm in the direct deal with Lone Star Funds.
“This, in conjunction with ideal capital market conditions, allowed the portfolio sale to transact in a relatively short period of time, meeting State Farm's objective to close the deal by year-end,” Nussbaum adds.
Cohen says investors are looking for assets with credit tenants and long-term leases. As such, “we expect to see an increase in sale-leaseback transactions during this favorable interest rate environment,” he says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
