BlueRoad Ventures Shells Out $139M for Net-Lease Portfolio

The newly created company has already boosted its portfolio to 1 million square feet with the acquisition of a 48-asset retail portfolio.

By Barbra Murray, Contributing Editor

Tim Farrell, Managing Partner, BlueRoad
Tim Farrell, Managing Partner, BlueRoad

BlueRoad Ventures just bolstered its holdings by a half-million square feet with the acquisition of a retail portfolio encompassing 48 single-tenant, net-lease assets. The new Chicago-based alternative asset management and investment company purchased the collection of properties, which spans 18 states, from retail REIT Brauvin Net Lease for $139 million.

BlueRoad had the inside track on this one, snapping up the 524,000-square-foot collection of assets in an off-market deal. The company knows how to work around the competition. “BlueRoad’s ability to source off-market transactions such as this portfolio can be attributed to a combination of relationships, market knowledge and a proactive approach to uncovering opportunities and providing valuable opportunities to our partners and sellers,” Farrell told Commercial Property Executive. Law firm Much Shelist represented the company in the transaction.

Situated in high-traffic areas, the freestanding buildings feature such tenants as Burker King, Steak n’ Shake, Advance Auto Parts, CVS and Tractor Supply Co., which also occupies a property in Cedar Park, Texas.

The acquisition marks quite a growth spurt for BlueRoad, boosting its portfolio to the 1 million-square-foot mark. But it’s really just the beginning—the company is scouring stable and growing U.S. markets for both core and value-add office and retail assets. And price tags are not necessarily the first consideration in BlueRoad’s pursuits. “As opposed to a particular budget, our focus is on sourcing and executing on the right opportunities for our partners in order to provide solid risk-adjusted value and returns,” Farrell said.

BlueRoad will be hands-on with the newly purchased properties, as the company’s asset management group will spearhead tenant services.