Arch Street Enters Infrastructure Sector with $3B Push

Arch Street Capital Advisors has announced it is entering the infrastructure sector in a big way—aiming to invest $3B in all-cash transactions ranging from $200M to $800.

The decision to expand into infrastructure investments was prompted by specific mandate received by Arch Street from one of its existing capital partners, the company said.

“We are excited to broaden our investment focus to include infrastructure,” said Arch Street Capital Advisors CEO, Anup Patel, in a statement.

“With our proven track record of successful real estate investments, we are confident that we can bring the same strategic and diligent approach to infrastructure investments,” Patel said.

On behalf of its institutional capital partner, Arch Street said it is seeking said it is seeking passive infrastructure investments across all sectors and all geographies. The assets must be leased or contracted to investment grade counterparties for a duration of 20+ years, with the counterparty bearing all operational risk, the company’s statement said.

Target sectors include power generation and utilities, mining and resources, shipping and marine, health care, cell towers and other telecom infrastructure. Arch Street also has an ongoing effort to pursue deals for large data centers.

“The infrastructure investments will focus on projects that support economic growth, promote sustainable development, and improve quality of life for communities,” Patel said.

NYC-based Arch Street has established a Community Enhancement Program as a mechanism for its capital partners to support the local communities they invest in. The program targets acute needs specific to each respective community, including homelessness, food insecurity, education and tenant health and wellness.

A statement on the company’s website about the program says its “ultimate goal is to focus on the intersection between social and economic benefits, allowing our capital partners to make a positive impact on the communities adjacent to their real estate investment.”

The website also says that—in addition to the new infrastructure push—Arch Street is actively seeking to acquire, recapitalize or joint venture on yield-generating real estate investment opportunities with transaction sizes up to $500 million across various CRE sectors and capital structures.

The targeted sectors include, but are not limited to single-tenant, office, industrial, health care and data centers with 10+ year lease terms; multifamily, senior housing, manufactured housing and select service hospitality; capital structures including equity, preferred, mezzanine and joint venture.