Stonemont Buys $1.3B Net Lease Portfolio

CBRE Capital Markets arranged the transaction on behalf of the seller, Oak Street Real Estate Capital, and secured $1.1 billion in acquisition financing for Stonemont. The deal encompasses 100 assets in 20 states.

One of the portfolio properties: the MetLife building, 501 US-22 Bridgewater N.J.
One of the portfolio properties: the MetLife building, 501 US-22 Bridgewater, N.J.

In a $1.3 billion deal, Stonemont Financial Group has acquired 100 triple net lease properties in 20 states. The portfolio comprises retail, industrial and office assets, with 96 percent of its total operating income coming from investment grade tenants. 

CBRE Capital Markets’ Guy Ponticiello and James Scott arranged the transaction on behalf of the seller, Oak Street Real Estate Capital. Tom Traynor, James Millon and Peter Marino secured the loan on behalf of the borrower.

Acquisition Financing 

The Debt & Structured Finance team secured $1.1 billion in acquisition financing for Stonemont. Financing was provided at 83 percent LTV and includes a floating-rate CMBS loan and two layers of mezzanine debt. J.P. Morgan Chase provided the financing, along with Deutsche Bank and Barclays as co-lenders.

One of the portfolio properties: the Shire building, 1200 Lakeside Drive, Bannockburn, Ill.
One of the portfolio properties: the Shire building, 1200 Lakeside Drive, Bannockburn, Ill.

“The portfolio’s credit quality, lease terms and real estate assets represented one of the best portfolios to hit the market in many years,” Ponticiello told Commercial Property Executive. “This sale is evidence that investors continue to seek yields with the safety of cash flows provided by institutional net lease offerings like this portfolio.”

Last month, CBRE Capital Markets orchestrated the sale of the 1.8 million-square-foot Centre Square, a two-tower office complex in Philadelphia’s central business district, to Nightingale Properties LLC for $328 million. The sale marked the largest office transaction in the city’s history based on square footage. 

Images courtesy of CBRE