DENVER—Locally based Northstar Commercial Partners has acquired a 24-property national US portfolio for $224 million from Mr. Moshe Silagi, president of Silagi Development and Management. The diversified value-add portfolio spans coast to coast, with various locations in 12 states.
Thirteen of the properties are industrial warehouse & manufacturing facilities, eight are office buildings, and three are retail assets. The value-add opportunity attracted investors not only nationally, but also on a global scale—including ALTO Real Estate Funds, a US firm that invests funds raised in Israel.
The properties total more than 5.9 million square feet on 486 acres. Twenty-two properties have officially closed, with the last two in final stages of acquisition.
Several large, corporate brands currently occupy space as tenants, including well-known entities such as: Time Warner Cable; Bechtel Corp.; ATSG; Dollar Tree; and Progressive Corp.
For more than 16 years, Northstar Commercial Partners has specialized in buying vacant or highly distressed assets and placing them back into full productivity, in order to create jobs and opportunities for Americans throughout the Country.
“This deal is the most significant acquisition in Northstar's company history, bringing along with it our largest opportunity to date to create a positive impact for businesses and local communities nationwide,” says Brian Watson, Northstar's founder and CEO. “It is very rare in this economic environment to acquire an off-market deal of this magnitude, diversity, and low occupancy rate, in order to drive very attractive opportunistic level returns.”
Twenty-one of the facilities included in the 24-property acquisition are located in towns or areas with high unemployment, often times well above national and state averages.
Watson, who personally invested nearly two years into acquiring this off-market portfolio, adds that “The fact that the vast majority of these properties are found in places where people need work, and are looking for greater opportunity, makes us at Northstar all the more eager to be involved.”
Northstar plans to work to increase the overall occupancy rate of the portfolio, which is currently ±70% attracting new businesses to these communities, translating directly into jobs and other valuable local resources.
National law firm Akerman LLP represented Northstar Commercial Partners in the investment.
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Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
