Acquisitions in recent months allow the fund to become fully invested
After acquiring more than $400 million in assets over the past several months, St. Louis-based ElmTree Funds has announced that its second fund – ElmTree Net Lease Fund II – is now closed and fully invested with total assets just under $1 billion. Fund II has invested primarily in single tenant, investment-grade net lease real estate assets, sale leasebacks, and build-to-suits with tenant lease terms of generally 12 or more years.
Commitment for the latest fund came from investors in ElmTree’s prior fund, along with several new investors. Fund II consists of 56 assets across 26 states with a total of 6.6 million square feet. More than half of the properties are industrial (53 percent); 31 percent are office; 12.5 percent are medical, and just under 4 percent are General Services Administration (GSA) deals. Build-to-suit developments make up 65 percent of the properties, and 75 percent of the assets have investment-grade tenants with a weighted average credit rating of BBB+. The weighted average remaining lease term for all assets in the portfolio is 12 years.
“ElmTree remains focused on investing with credit-worthy, investment grade tenants for the certainty they provide, and the assets acquired through Fund II are no exception,” notes Jim Koman, managing principal of ElmTree Funds.
A sampling of assets in the Fund II portfolio include:
- Two 225,198-square-foot, build-to-suit industrial developments in Stratford, Conn., and Staunton, Va., that house FedEx Ground Package Systems, Inc.
- A 24,881-square-foot industrial space in Brookshire, Texas, and an 18,461-square-foot industrial property in Lubbock, Texas – both of which are occupied by H&E Equipment Services, Inc.
- A 60,000-square-foot industrial build-to-suit property in Trenton, Ga., occupied by Accellent, a plastics product manufacturer
- A 98,157-square-foot office property occupied by Siemens and located in Norwood, Mass.
- A 67,775-square-foot office building in Orlando, Fla., which houses Synchrony Financial
- A 95,640-square-foot office development that is occupied by Emerus Holdings, Inc., and is located in Houston, Texas.
ElmTree Fund II Closes Near $1B
First and Final Add
“Our strategy to invest in industrial and office properties across the country that have strong prospects for attractive risk-adjusted returns over time has attracted a wide range of investors, helping to drive the success of Fund II,” said Joseph Yiu, chief investment officer for ElmTree Funds.
Also contributing to ElmTree’s success with Fund II, which broke escrow in Spring 2013, is the company’s vertically integrated approach to third-party development and project management for build-to suits that allows them to provide clients with customized, efficient, build-to-suit solutions designed to exceed all expectations.
About ElmTree Funds, LLC
ElmTree Net Lease Fund II is a net lease fund sponsored by ElmTree Funds, LLC, a private equity investment firm based in St. Louis, with offices and affiliates across the country. The firm seeks opportunities in the commercial sale leaseback and net lease real estate markets. To learn more, visit www.elmtreefunds.com.
For more information, contact:
James G. Koman
Managing Principal
(314) 261-7348
OR
Joseph Yiu
CIO & Managing Principal
(201) 892-5550
OR
Julie Hauser
The Hauser Group
(314) 436-9090