HFF Announces $159.2M Recapitalization of 11-Property, Multi-State Industrial Portfolio

Mar 23, 2018 06:45 am

Holliday Fenoglio Fowler, L.P. (HFF) announces the $159.2 million recapitalization of a fully leased, mission-critical 11-property industrial portfolio totaling 2.77 million square feet in Georgia, Illinois, Michigan, Minnesota, Ohio, Pennsylvania and Texas.

The HFF team represented the seller, a joint venture between Brennan Investment Group, Arch Street Capital Advisors, LLC and Gatehouse Financial Group Limited, and the buyer, a new joint venture between Brennan Investment Group and GCC-based Sidra Capital. Additionally, working on behalf of the new owner, the HFF team secured and will be servicing a 67-percent LTV, 10-year, fixed-rate loan with Goldman Sachs.

The portfolio, known as USIPA, comprises properties in markets in and around Atlanta, Georgia; Chicago, Illinois; Detroit, Michigan; Minneapolis, Minnesota; Akron and Cincinnati, Ohio; Philadelphia, Pennsylvania; and Dallas, Texas. The portfolio, which is situated on a total of 199.9 acres, is triple net leased to nine tenants and features single-tenant buildings ranging from 90,000 to 578,000 rentable square feet with clear heights from 17 to 34 feet and an average of 13.2 percent office finish.

The HFF debt and equity placement team included managing directors Claudio Sgobba, based in London, and Christopher Carroll, based in Chicago, and senior directors Robin Stolberg and Kurt Sarbaugh, based in Chicago, along with managing director Matthew Schoenfeldt, a licensed Michigan real estate broker, and managing director Jules Sherwood, a licensed Minnesota real estate broker.

“We are pleased to support the previous and new ownership,” Sgobba said. “USIPA has averaged a 96-percent historical occupancy over the past decade and will deliver a high yielding cash-on-cash return, supported by a WAULT of 12 years, and quality middle-market credit that reflects the American economy through its diversified tenant roster. This is a prime example of HFF’s ability to manufacture off-market, one-of-a-kind deals for our strategic international clientele. We are very proud of long-lasting, meaningful relationships with the merchant families, family-offices, institutions and sovereigns of the Gulf states and to truly act as their trusted real estate advisor.”

“HFF was instrumental in creating a mutually beneficial transaction for all parties involved,” commented Michael W. Brennan, chairman and managing principal of Brennan Investment Group. "The quality of the real estate portfolio and the mission critical nature of its tenancies provide predictable cash flow and the basis for a secure investment.”

“We are pleased we were able to assist in the realization of this carefully constructed asset aggregation strategy on behalf of our client Gatehouse Financial Group,” added Anup Patel, president and chief investment officer of Arch Street Capital Advisors. “Brennan Investment Group and HFF played an integral role in the successful recapitalization of this high-quality portfolio of industrial assets. We look forward to continuing to collaborate with all parties involved on future transactions.”

“We are delighted to see this successful exit happening for USIPA, our first aggregated industrial portfolio in the United States,” said Fahed Boodai, chairman of Gatehouse Financial Group. “This investment has delivered substantial returns to investors and further underlines our value-creation strategy, especially in partnership with Brennan Investment Group. Gatehouse has been actively investing in the U.S. industrial sector for a long time, and we will maintain this strategy as we continue to see value in this rapidly evolving sector.”

About Brennan Investment Group

Brennan Investment Group is a value-add industrial property owner led by career industrial specialists. Active asset management is a key component of their value-added investment strategy. Brennan’s principals and its executives are the actual owners of every property in our portfolio and align their interest with their investors. Their current portfolio spans 27 states and encompasses nearly 35 million square feet. The company operates in markets that offer scale and liquidity, adjusting its allocations according to market conditions. Visit http://brennanllc.com for more information.

Gatehouse Financial Group Limited

Gatehouse Financial Group Limited (“GFG”) is the parent company of Gatehouse Bank plc ("Gatehouse Bank", "Gatehouse") a PRA and FCA regulated bank and real estate investment advisor based in London, and Gatehouse Capital KSCC ("Gatehouse Capital") (together, the "Group" or "Gatehouse Financial Group") a CMA regulated real estate investment advisor based in Kuwait. Gatehouse Financial Group was established in 2015 following a restructure of Gatehouse Bank. The Group has maintained a successful track record in real estate investment products with current assets under management in excess of $1.2 billion. Most of these assets are in the United States, United Kingdom and Europe. https://www.gatehousegroup.com.

About Arch Street Capital Advisors, LLC

Arch Street Capital Advisors, LLC is a full service real estate investment and advisory firm founded in 2003. Specializing in advising investors on their U.S. real estate strategies and have advised clients on more than $6.5 billion of transactions. On behalf of clients they manage a diverse portfolio of investments spanning multiple real estate sectors and risk-return profiles. As an organization, they possess significant transactional experience and expertise servicing the needs of Sharia-compliant capital. http://www.archstreetcapital.com/

About Sidra Capital

Sidra Capital is a GCC-based financial services provider with particular expertise in asset management, corporate finance and advisory services. Sidra Capital’s asset management division specializes in alternative investments, predominantly real estate and global structured trade finance while the company’s corporate finance and advisory division specializes in debt and equity arrangement, restructuring and mergers and acquisitions.

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

CLAUDIO SGOBBA, +44 20 7317 3115
HFF Managing Director
IL Lic. #475148377
HFF Managing Director
MI Lic. # 6504405163
HFF Managing Director
JULES SHERWOOD, (303) 515-8000
MN Lic. #40340183
HFF Managing Director
KIMBERLY STEELE, (713) 852-3420
HFF Digital Content/Public Relations Specialist