KKR’s NNN Investment Platform Acquires $780M in Assets in Q4 2021

NEW YORK, NY – Strategic Lease Partners, an NNN real estate investment platform launched by global investment firm KKR, closed six transactions in Q4 2021, totaling $780 million.

The six closed transactions comprised 31 individual assets that span nearly 5.4 million square feet, with a weighted average lease term of more than 16 years.

The acquisitions primarily consisted of mission critical industrial assets, with a focus on sale-leasebacks for private equity-backed companies. Comprising both domestic and cross-border portfolios, the transactions ranged from under $15 million for a single property to more than $500 million for a portfolio of assets. More than half of the assets hold LEED designation.

KKR initially launched the platform in August 2021 to acquire a diversified portfolio of NNN real estate. SLP is working with KKR’s real estate, credit and capital markets teams to underwrite mission-critical properties and deliver customized sale-leaseback solutions for a corporate and sponsor-backed tenants.

The platform aims acquire more than $3 billion in assets, primarily capitalized through KKR’s credit and real estate funds.

The six acquisitions included a 20-property, multi-state manufacturing and distribution portfolio, which is leased to a global beverage brand; a four-building manufacturing portfolio located across major Canadian and US markets that is leased to a leading North American retail and food services company; a 50,000-square-foot office building in Connecticut that is leased to an international investment firm; a four-building manufacturing portfolio located across New Jersey, Georgia and Wisconsin, which is leased to a plastics company; a 350,000-square-foot distribution facility in Illinois that is leased to a health and nutrition brand; and a 125,000-square-foot distribution facility in Tennessee, which is leased to a major wholesale tire distributor.

“SLP has built great momentum in its first few months of operation,” says Peter Sundheim, managing director of KKR’s real estate team. “We are delighted with the exceptional quality and diversification of the assets SLP has acquired for our NNN portfolio.”

“SLP’s ability to invest in deals of all sizes and to utilize its access to the KKR platform to deliver strong underwriting with speed and certainty is clearly resonating with sponsors and corporate tenants seeking to unlock the value of their real estate,” says Michelle Hour, director of KKR’s credit team.

“Our first six purchases are a great representation of the breadth of SLP’s underwriting capabilities,” states Andrés Dallal, a partner at SLP. “Our platform, supported by the institutional expertise and resources of KKR’s team, makes us an ideal partner for companies in need of comprehensive, creative net lease solutions.”

“SLP has the expansive scope and ability to deliver business-empowering sale-leaseback solutions for a full array of asset types, from single-tenant deals to multi-property portfolios across regions,” says Joseph Mastrocola, a partner at SLP. “As we look to continue building on our momentum over the coming months, we are excited to close investments that deliver value in an appreciating and evolving commercial and industrial market.”