ElmTree Net Lease Fund II is pleased to announce the recent acquisition of five single-tenant net lease investment properties, totaling $105.2 million. All properties are currently occupied under, or have commitments for, 10 to 15-year lease agreements.
Among the acquisitions were three build-to-suit properties, including a 306,406-square-foot, build-to-suit industrial facility in Lafayette, Ind. Upon completion, the property, which sits on 53.47 acres, will be leased to General Electric Company (GE) and will house subsidiary GE Aviation. This facility will be the seventh GE Aviation facility in the U.S. in the past seven years. It will operate a highly advanced assembly line incorporating several new technologies, including automated vision inspection systems and radio frequency parts management to easily spot parts on the shop floor.
The second build-to-suit acquired by ElmTree is a 175,000-square-foot warehouse/office located on the 12-acre Tyco Electronics campus in Shakopee, Minn. The project will consist of approximately 20,000 square feet of warehouse space, 35,000 square feet of lab space and 120,000 square feet of office space. It will be leased to ADC Telecommunications, Inc., a communications company that was acquired by Tyco Electronics in 2010. Tyco Electronics Group S.A. recently sold its existing building, so the approximately 350 employees that were housed in that location will be transferred to the new facility upon completion.
A 70,000-square-foot, three-story office facility located in Roanoke, Va., is the third build-to-suit property added to ElmTree’s portfolio. Upon completion, the office space will be leased to Allstate Insurance Company and will be used for IT, claims and subrogation. It will also provide space for two call centers – one internal and one customer facing – and will replace an existing, outdated facility in Roanoke that Allstate has been working from since the 1970s.
In addition, ElmTree acquired two existing facilities. One is a 57,260-square-foot office and call center in Fort Myers, Fla. The building sits on 7.9 acres and is currently occupied by Comcast of the South Inc., a fully owned subsidiary of Comcast Corporation that operates as a media and technology company worldwide. Plans call for an additional 220 employees to be hired by year end for this facility, which currently serves as Comcast’s Center of Excellence and call center, serving customers who get their phone, Internet, and/or cable services provided through their community’s homeowner’s association.
The final acquisition is a 59,568-square-foot, two-story office building located in New Providence, N.J. The facility sits on 7.39 acres of land, and is being leased to Reed Elsevier, Inc., a holding company that operates as a publisher and information company. The property, which houses 170 employees, has been owned and occupied by Reed Elsevier, Inc. or one of its subsidiaries since 1978. It is strategically located near New Jersey Transit’s Murray Hill Station, which provides direct commuter rail service into New York and allows the company to recruit the young and talented workforce living in New York City.
For more information on these acquisitions and other closings, visit www.elmtreefunds.com.
About ElmTree Funds, LLC
ElmTree Net Lease Fund II, LLC is a real estate private equity fund sponsored by ElmTree Funds, LLC. ElmTree Funds, LLC is a private equity investment firm based in St. Louis, with offices and affiliates in Charlotte and New York, which seeks opportunities in the commercial sale leaseback and net lease real estate markets. For more information, visit www.elmtreefunds.com.
# # #
For more information, please contact:
James G. Koman Joseph Yiu Julie Hauser
Managing Principal CIO & Managing Principal The Hauser Group
(314) 261-7348 (201) 892-5550 (314) 436-9090