ST. LOUIS—ElmTree Net Lease Fund II, LLC, recently acquired four significant properties from across the nation, bringing the total value of properties acquired or committed in 2014 to nearly $300 million. Together with properties acquired in 2013, the total value of the fund's assets now stands at about $420 million. Officials from the St. Louis-based net lease investment fund say it also has three additional deals under contract and letters of intent on six more properties. 2015 also promises to be a good one for the fund, which is projected to grow to $900 million by mid-year.
ElmTree, which focuses on acquiring and operating single-tenant, office and industrial properties across the US, acquired its new properties in December. They include a 513,832-square-foot distribution facility in San Antonio, TX, currently occupied by Carrier; a 102,950-square-foot storage and distribution facility in Russellville, AL, occupied by Saint-Gobain ADFORS; a 38,900-square-foot medical building in Phoenix, AZ, which houses Adeptus Health, and a 226,000-square-foot flex building under construction in Grandview, MO, which the National Oceanic and Atmospheric Administration's National Logistics Support Center and National Reconditioning Center will occupy upon completion later this year.
ElmTree estimates that the total purchase price was about $90.3 million. The firm told GlobeSt.com, however, that they could not divulge the individual prices. Tenants occupy or lease 100% of the buildings' space.
The three buildings under contract will cost $32.2 million and the other six, for which ElmTree has executed non-binding letters of intent, have a purchase price of $130.7 million. Three of the latter are for build-to-suit transactions where the fund will provide all or a portion of the total financing. The fund won't reveal any further details on these properties until the individual deals close.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
