Dallas-based Montgomery Street Partners has partnered with an unnamed Fortune 500 US company to launch a new ground lease REIT. The new investment vehicle will deploy $1 billion to invest in ground leases in the top 50 US markets. Ground Lease REIT is the official banner of the investment entity.
The investment model will accommodate existing ground leases as well as ground-up developments, re-developments and existing cash-flowing properties across all property types. Ground Lease REIT will acquire these leases over the next several years.
The investment vehicle serves as a strategic play to hedge against changing market conditions, according to Murray McCabe, the managing partner of Montgomery Street Partners. "We believe this is an extremely compelling opportunity for investors to gain access to long-duration, inflation-protected real estate assets that are cycle tested. Equally, we believe ground leases to be an efficient and accretive financing alternative for real estate owners and developers," he said in a statement.
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Kelsi Maree Borland
