Dealmaker: CBRE Arranges $1.3B Portfolio Sale, Secures $1.1B in Financing

CBRE Capital Markets, Los Angeles, managed Stonemont Financial Group’s latest purchase: a 100-property, 6.8-million-square-foot triple net lease portfolio for $1.3 billion.

Stonemont Financial Group, Atlanta, borrowed $1.1 billion to acquire the portfolio.

CBRE Managing Director Guy Ponticiello and Managing Principal James Scott represented the seller, private equity firm Oak Street Real Estate Capital, Chicago.

The portfolio includes office, industrial and retail properties in 20 states. More than 95 percent of net operating income comes from investment-grade tenants.

“The credit strength of the tenants, diversification of industries represented, along with asset types and geographies, made the offering one the highest-quality net lease portfolios of scale to have hit the market in years,” Ponticiello said. He noted strong interest from both international and domestic investors.

CBRE Capital Markets Executive Vice Presidents Tom Traynor, James Millon and Peter Marino secured $1.1 billion in acquisition financing for the portfolio. The financing, which equaled 83 percent of asset value, included a floating-rate commercial mortgage-backed securities loan and two layers of mezzanine debt. J.P. Morgan Chase provided the funds with Deutsche Bank and Barclays as co-lenders.

“Our team engineered a capital structure consisting of $800 million of floating-rate CMBS and $274 million of mezzanine financing in addition to preferred equity,” Millon said.