Thompson National Nabs $110M Portfolio from Storm

Thompson National Properties has agreed to purchase a $110 million commercial and industrial portfolio from Storm Properties. The transaction, one of Southern California’s biggest deals in 2008, is for a total of approximately 1.5 million square feet of property. About half of the property in the sale is fully constructed commercial and industrial facilities, while the remainder of the portfolio is comprised of property that is presently under construction. The properties in the deal are in various stages of completion, ranging from fully operational and leased to finalized entitlements. Storm Properties will be responsible for finishing the developments not yet fully constructed. The buildings in the transaction are located throughout Southern California, in places such as Los Angeles, Torrance, Harbor City and Valencia, among others. The deal will be completed in phases with a final transfer date of February 2009. In the deal, Storm Properties will be selling off about 80 percent of its real estate portfolio to Thompson National Properties. The acquisition is significant for Thompson, a rapidly growing real estate investment and management firm which was founded in December of 2007. Storm Properties decided to go forward with the sale in order to diversify its industrial portfolio into other sectors. It will use the infusion of funds from the sale to invest in commercial assets, including office, multi-family and retail properties. The deal is seen as a sign that despite the tightened market, mutually beneficial deals can still be consummated. “Storm Properties received a premium value despite the general real estate market slow down,” Storm vice president David Simard indicated in a release. Thompson National Properties is headed by Anthony Thompson, founder of Triple Net Properties L.L.C. and NNN Realty Advisors Inc., which invested nearly $3 billion of equity in more than 250 properties nationwide. Those two entities joined into a reverse merger with real estate services firm Grubb & Ellis Co. in late 2007. Soon after, Anthony Thompson launched Thompson National, which is not affiliated with Grubb & Ellis.Thompson National has recently shaped its executive leadership in July, naming Johnna Howard as its CFO, Brad Thomas as senior vice president of retail development, and Michael Loukas, executive vice president of the securities devision.