In the second half of December, Mesirow Sale-Leaseback Capital sold two structured credit tenant, net-leased properties to private buyers.
Together, the transactions, which included an on-airport Amazon distribution center, totaled more than $570 million in value and 1.4 million square feet.
While Avison Young, which closed the deals, was restricted from sharing broader details of the transactions, Jonathan Hipp, head of US Net Lease Group, tells GlobeSt.com it was unique because it was a zero-cash flow deal—meaning the rent the buyer receives is equal to what it will pay on its mortgage. The structure only works if the tenant has strong credit and is on a long-term lease, which allows the buyer to put maximum leverage on the property.
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.
Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
