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PHOENIX—Fundamental Income has debuted a new net lease platform called Fundamental Income Properties. The platform received an initial equity commitment of $500 million from a fund managed by Brookfield Asset Management. The founders of Fundamental Income, Chris Burbach and Alexi Panagiotakopoulos, will take on roles of CEO and CIO of Fundamental Income Properties, respectively.
The platform will invest in single-tenant properties, net leased to businesses operating in industries that directly and indirectly serve the US consumer. Fundamental will target customer facing real estate and support facilities across 85 industries, including, but not limited to consumer services, hospitality, consumer products, healthcare, and critical industrials.
"There continues to be more and more demand for efficient long-term real estate capital particularly in times like these where businesses are realizing the importance of being aligned with collaborative, well capitalized capital partners," Burbach says in prepared remarks.
Fundamental Income also has a public investment vehicle for net lease. NETL is an exchange-traded fund that provides investors access to net lease REITs. By contrast, Fundamental Income Properties is a private strategy that directly purchases single-tenant properties and net leases them back to companies.
"This platform will invest directly into properties and buy fee simple interest in properties and is not publicly available to investors who trade on the public markets," Panagiotakopoulos tells GlobeSt.com.
"From child care, to dentists, veterinary services and restaurants to automotive services and logistics providers—we're looking to provide the long term capital and certainty of execution that every business owner strives to find," he says.
On the other hand NETL was created because it is very difficult for investors to access the net lease space in a diversified, liquid manner without the ability to contribute substantial capital, time and attention to building a diversified portfolio, he concludes.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
