Net Lease Influencers | GlobeSt
Net lease has always been a stable asset class, attracting investors intrigued by its regular cash flow and strong fundamentals. Now it is wobbling a bit as the economic uncertainty clouds pricing but few believe that will last long. Still, it is times like these that require the best of the best to navigate the space and we are confident we have picked that crew in our 2022 net lease influencers, which are featured on the next several pages. We hope you enjoy their stories as much as we did as we made our selections.
INDIVIDUALS
BRYAN BENDER As partner and managing director at Fortis Net Lease, Bryan Bender helps manage the company, and he has brokered nearly $2 billion in net lease sales. He has beaten his own personal sales record for the past four years and, during his 14 years of experience, he has repeatedly set record cap rates in numerous states. Bender is a leader in Dollar General sales, with 1,200 sales across 40 states, and he built a dollar store marketing platform for his team that helps bring buyers and sellers together. He stays up to date on market trends, patterns and movements, and he applies deep knowledge and determination to provide the best service to clients. Mindful to always expect the unexpected, Bender responded to the onset of the pandemic by educating himself and his clients on all possibilities and having an open and transparent approach to deals. He has won numerous net-lease-related awards, including the CoStar Power Broker Award for seven years in a row. Bender is a member of the Forbes Real Estate Council of Industry Professionals and ICSC.
JOSHUA BERGER Joshua Berger is a top producer at Kidder Mathews, where he is an SVP and shareholder. He received the firm’s big hitters award in 2020 and 2021 after completing 56 deals totaling $177 million in sales in two years. Berger remains on track as a top retail agent having completed $52 million across 15 deals during the first five months of this year. During his seven-year career, Berger has sold more than $450 million in retail space throughout the US. He specializes in the sale and advisory for net lease investment properties with a concentration on restaurant- and pharmacy-leased properties. He leads a net lease division team in the firm’s West Los Angeles office, where he is responsible for putting together deals, managing clients and overseeing his team’s day-to-day operations. He mentors and trains his team, which has grown to six agents. Among Berger’s recent notable transactions are the Pagani of Beverly Hills dealership at $4.1 million, a Walgreens in Houston for $7.5 million, and a CVS in New Hampshire for $10.4 million.
RYAN BUTLER Known for finding deals and solving problems, Ryan Butler is focused on helping clients acquire and divest net lease assets across the retail, industrial, office and healthcare sectors as managing director and partner at Stan Johnson Co. Butler’s 22 years of experience have helped him develop deep relationships in the net lease arena. During his career, he has closed $2.55 billion in sales, and in the past three years, he has sold more than $1.1 billion of investment properties across nearly 200 individual transactions. In recent months, Butler notably achieved record-low cap rates for a BJ’s Wholesale Club in Massachusetts and a McDonald’s restaurant that sold in Texas. In addition, he brokered the sale of three single-tenant retail portfolios for a combined $75.5 million. Butler’s production volume made him eligible to be inducted into the firm’s inaugural class of partners in 2020, an opportunity offered to SJC’s top sales producers that recognizes outstanding contributions and commitment to providing extraordinary service to clients. Butler serves as a thought-leader in the industry by frequently contributing to whitepapers and providing expertise on net lease for media outlets.
PAMELA GOODWIN Prior to founding her own commercial real estate development and brokerage firm, Pamela Goodwin was a property development manager for Brinker International Inc. While there, she was responsible for new restaurant developments for more than 50 Chili’s locations and collaborated with real estate, architecture, construction, finance and legal partners, as well as with outside consultants to coordinate entitlements, prepare site-specific budgets, secure approvals to produce site-specific design and construction documents. Goodwin now serves as CEO of her company, Goodwin Commercial, which specializes in developing properties with national retailers and restaurants. She holds more than 35 years of experience developing pad sites with national retailers, including 15 years of experience in mall developments of more than one million square feet, including project management, construction, tenant coordination, city permit approval and grand openings. Goodwin was part of a team on the $175 million renovation of Northridge Fashion Center after the Northridge, CA earthquake, and she served as a project manager on the $150 million expansion and renovation of Towson Town Center in Towson, MD. She has won many awards and is recognized in Texas as a leader in NNN properties. In addition, Goodwin is a best-selling author, a social media influencer and she serves on her city zoning board of adjustments.
BRANDON M. HANNA After a decade working in the commercial real estate industry, Brandon Hanna chose to start his own company, Encore Real Estate Investment Services, which has grown into a successful investment firm and a starting point for many young real estate professionals. Today, the firm employs 40 professionals across offices in Detroit, MI, Toledo, OH and Minneapolis, MN. Last year, Encore closed 315 deals totaling $935 million in sales, and Hanna notably closed an 11-drugstore portfolio with properties across the US. As a managing partner at the firm, Hanna oversees a team of investment professionals that advise clients in the acquisition and disposition of net-leased and multi-tenant retail assets throughout the nation. Hanna also conducts transactions for his own clients and takes pride in providing guidance and advice on agreements, mortgages and market prices to assist both buyers and sellers in making the best long-term decision for their business. Throughout his professional career, Hanna has completed more than 400 transactions valuing more than $2 billion and he has completed more than 80 loan assumptions.
CHRIS HOLLENBECK As a new broker in 2007, Chris Hollenbeck focused on helping local retail companies lease space in the Phoenix metro area. This path allowed him to identify a void in the market and provided a realization that retail clients needed assistance with their investment requirements. As a result, Hollenbeck decided to pause his career as a leasing professional and focus on retail investment. Today, he serves as executive managing director at Cushman & Wakefield, where he focuses on selling properties throughout the US. During the pandemic, Hollenbeck’s ability to pivot and navigate change served him well, as with his experience with single-tenant retail properties. He shifted his focus once again to concentrate on COVID-19-resistant spaces, including properties with drive-up and drive-thru capabilities and outdoor dining spaces. He also saw a trend of consolidation in the net lease REIT market and got ahead of multiple large portfolio sales when REITs were looking to either sell off different sectors due to the pandemic or acquire new sectors for the same reason. He made inroads with multiple private equity firms that were buying companies and seeking sale-leasebacks, before then selling the portfolio businesses’ real estate to different publicly traded REITs. Throughout his career, Hollenbeck has completed more than 1,000 transactions totaling more than five million square feet and more than $1.2 billion in total considerations.
BRENDAN JOST (RISING STAR) Brendan Jost is known for leading change within his company and the industry. As acquisitions and dispositions manager at SimonCRE, Jost led the charge in developing the firm’s in-house brokerage arm and he is directly responsible for the growth of the team. Jost handles the day-to-day management of SimonCRE’s disposition pipeline and investment sales team. Since joining the company in mid-2019, Jost’s team has sold more than 60 SimonCRE-developed assets, equating to more than $200 million in total volume. In 2021, Jost was vital in the sale of a more than 26,000-square-foot, ground-up shopping center in Chandler, AZ for more than $17.3 million, which represented the largest project sale in SimonCRE’s history. During the height of the pandemic, Jost assisted the firm in setting multiple subsequent cap rate records for new construction projects occupied by their preferred brands, including Dollar General and O’Reilly Auto Parts. During this time, Jost additionally acted on increased investor sentiment for properties occupied by essential businesses. He is a serial networker and is energized through his daily interactions with teammates, vendors and career acquaintances. He is an active member of both ICSC and ULI, where he was a past participant in the Young Leaders Partnership Forum.
DAVID KRASNOFF During the past few years, David Krasnoff has financed more than $1 billion in net lease assets and he has consistently served as a top producer within Avison Young’s debt and structured finance group. As executive director at the firm, Krasnoff serves clients ranging from large institutional investors to local and regional players. His main responsibilities include originating, structuring and closing debt and equity financings in the net lease space across the country. In addition to these more traditional duties, Krasnoff mentors younger members of his team and he can often be found explaining the basic principles of the business to first-year analysts and summer interns. During the challenges of COVID-19, Krasnoff leveraged his knowledge of active lenders, his ability to underwrite the entire loan, and his conviction to provide a forward commitment to identify several attractive financing options. He has long been a proponent of commercial real estate’s emphasis on community and networking. He is a past treasurer and executive committee member of NAIOP’s New York City chapter, and he supports several community and charitable organizations outside of his professional duties.
MARK POMELLA (RISING STAR) As VP of investment sales at SAB Capital, Mark Pomella represents individuals, private equity, real estate developers and tenants in the acquisition and disposition of commercial net lease real estate assets. Well-versed in 1031 exchanges and sale-leaseback execution, Pomella is also responsible for overseeing and developing new agents, and he works with company and industry newcomers as a mentor to teach the fundamentals of business development, transacting and building relationships in the net lease realm. Pomella believes the best professional relationships are those where both parties benefit, which drives him to seek mutual development and innovative solutions. During the past three years, Pomella has become one of SAB’s top earners, working on a deal volume of more than $100 million. He was awarded the SAB core values award for grit in the field; an accolade he values as much as his transactional success. Pomella strives to position his clients for success in the future while achieving their investment criteria in the short term. He diligently and regularly reviews his clients’ portfolio investments to mitigate risk before it becomes apparent, which proved successful during the height of the pandemic as his clients invested wisely and had no need to panic.
ELIZABETH J. RANDALL Elizabeth Randall began her career as a risk analyst on a mergers and acquisitions team for private equity clients, focused on the liability side of transactions. Her penchant for risk management has prepared her well for black swan events, such as COVID-19. Randall understands that while such events are impossible to predict, preparation is key. Described as creative and innovative, Randall is president and associate broker at Randall Commercial Group LLC, where she oversees the firm’s deal pipeline and business development, while also directing its proprietary research and analytics efforts and managing development consulting and partnerships. She represents both institutional and private investors in the sale of individual assets and portfolios, and her clients range from healthcare practices and providers, real estate investors, family offices, trust companies, wealth managers, developers and individual real estate investors. Her current deal pipeline includes $365 million in transactions and development partnerships. Randall is a frequent speaker on net lease investments at conferences and forums, and she has been recognized as a leading business professional in Mississippi and as a healthcare real estate influencer.
CAMILLE RENSHAW As CEO and co-founder of B+E, Camille Renshaw sets corporate strategy and oversees implementation and operations. With 18 years of industry experience, Renshaw is credited with helping to revolutionize the net lease market by creating an online platform for net lease dealing. The trading platform consists of user-friendly dashboards, real-time predictive pricing and an AI-driven exchange. Through B+E’s platform, buyers and sellers can conduct entire transactions online, reviewing real-time credit, news and tenant data while they trade; much like online stock trading platforms. During the pandemic, Renshaw successfully added staff and new offices in Atlanta, Charlotte, Orange County, San Francisco and Dallas, and she also oversaw the sale of a portfolio of convenience stores consisting of 17 locations and 17.3 acres for $71.5 million. Renshaw is an executive in residence at NYU Stern School of Business and an advisory board member for Rutgers University’s big data program. She also serves as an advisor to Dreamit’s UrbanTech Accelerator.
MICHAEL SCALI Michael Scali, a partner at SAB Capital, has spent the past decade working with net lease purchasers to construct conservative portfolios that fit their investment yield criteria. He and his team act strictly as buy-side representatives, and he focuses on creating long-term solutions that provide conservative cash flow while helping clients defer their capital gains taxes. Scali leads a group that focuses solely on working with 1031 exchange buyers transitioning out of management-intensive assets into NNN properties. Within his role at SAB Capital, Scali leads a team tasked with running an in-depth process for clients and their referring partners that begins with educating potential clients on the net lease sector and building portfolios based on client needs. After determining the sector and asset and setting the goal of obtaining a site, Scali creates a deal team to assist the new buyers in their acquisitions. His team includes 1031 qualified intermediaries, net lease attorneys, third-party engineers and other professionals. Having successfully expanded into California, Scali now has a presence in Southern California and New York City, which has allowed his team to access 1031 capitals in the smallest nooks and crannies of the two biggest 1031 hotbeds in the country.
SCOTT SCURICH Scott Scurich serves as co-founder of B+E, where he leads daily operations and technology. Scurich has 14 years of industry experience and he holds real estate licenses in New York, Pennsylvania, Tennessee, Georgia, California and Alabama. Leveraging the largest data set in the industry, B+E offers an online platform for net lease dealing that consists of user-friendly dashboards, real-time predictive pricing and an AI-driven exchange. Buyers and sellers can conduct entire transactions online, while reviewing real-time credit, news and tenant data as they trade — much like online stock trading platforms. Scurich successfully dealt with the recent turbulent times through his agility. Since 2020, B+E added staff and offices in Atlanta, Charlotte, Orange County, San Francisco and Dallas, and under Scurich’s leadership, the firm sold the largest portfolio of convenience stores, comprising 17 locations and 17.3 acres for $71.5 million.
CHRIS SHELDON Chris Sheldon focuses on implementing strategic marketing campaigns for his clients that target aggressive capital seeking net lease investments nationwide — from family offices to institutional investors to 1031 exchange buyers. Sheldon, who is an executive managing director at Cushman & Wakefield, has recently closed numerous net lease transactions at some of the lowest cap rates and highest prices per square foot in the industry together with team members. With intimate knowledge of the national net lease investment market for retail, industrial and medical office properties, Sheldon offers clients disposition expertise in pricing, market penetration and targeting active investment capital. He also specializes in representing clients in acquiring net leased investment properties for 1031 tax-deferred exchanges. Sheldon and his team have closed more than 120 transactions totaling more than $1 billion in the past three years. Notable sales transactions include a seven-property mixed-use net lease portfolio in Carmel, CA for $44.6 million; a Komatsu distribution facility in Pittsburgh, PA for $33.5 million; Bank of America in New York City for $31.3 million; and a Softbox Systems industrial facility in Greenville, SC for $22 million.
CLAY SMITH (RISING STAR) Since getting his start in commercial real estate five years ago, Clay Smith has become one of the top 10 agents at Matthews Real Estate Investment Services, where he is an associate VP. Smith specializes in net lease properties with an emphasis on car washes. He has proven to be a trusted resource for his clients by generating competitive offers through successful marketing campaigns and by connecting buyers with the right asset. By treating brokerage as a lifestyle rather than a 9-to-5 job, Smith is able to recognize growth opportunities before they become apparent to others. For example, Smith began focusing on car washes prior to their surge in profit and popularity because he identified the market as a prime opportunity as consumer trends shifted. Since 2017, Smith has closed more than 110 deals, totaling more than $235 million in sales volume. Smith had his most successful year as a broker in 2021 by closing more than $145 million in net lease retail, which resulted in him receiving the Matthews Circle of Excellence Award, given to agents who book more than $1.5 million in commission in a single year. In his current role, Smith works with the company’s support team to curate robust marketing campaigns for listings, connect with current and potential clients, source the right opportunities for his clients, negotiate contracts, and sell real estate. Smith also takes on a leadership role in the Matthews Nashville office, where he relocated to assist in the opening and development of the new location.
BLAKE R. TAGMYER Blake Tagmyer and Cushman & Wakefield’s NNLG team have transacted more than $4.5 billion in volume across 45 states. Tagmyer has an extensive track record in representing build-to-suit developers, institutions and private investors in the acquisition and disposition of single-tenant and multi-tenant properties nationwide. He keeps a close eye on national trends and valuations and has experience in asset writing, 1031 exchange transactions and portfolio analysis. Known for pushing the envelope with innovative marketing techniques, Tagmyer has set cap rate records and has emerged as a trusted advisor and leader in the net lease investment space due to his negotiation and transactional skills, work ethic, property-specific marketing strategies and a client-centric approach. During Tagmyer’s time at the firm, he has received various promotions and sales recognition awards. Earlier this year, he was promoted to his current role of senior director, and in 2020, he was honored as a top 20 producer in San Diego, one of Cushman & Wakefield’s highest producing offices nationally. Among his notable recent transactions was the sale of a 157,000-square-foot, newly constructed Walmart Supercenter in Miami, FL and the sale of a newly constructed CVS in Miami Beach, FL which sold for $18 million.
TEAMS
BOB HORVATH AND TODD TREMBLAY OF HORVATH & TREMBLAY Bob Horvath and Todd Tremblay established their net lease team in 2016 with a mission to make an impact on the net lease retail real estate sector. They set out to build a collaborative investment real estate brokerage organization with a centralized professional services team that manages all brokerage continuum tasks for the company. A departure from the typical separation found within traditional brokerage firms, the Horvath and Tremblay model aims to eliminate inefficiencies and create consistent processes, products and messaging. Building on the theme of correcting inefficiencies and allocating responsibilities, Horvath and Tremblay saw a benefit in having listing and capital segmentation, which allows agents to become specialists and provide more value to clients compared to traditional investment sales brokers. At Horvath & Tremblay, there are senior agents who work to exclusively list property and buyside agents that are moving 1031 capital into listings throughout the US. In addition to building and innovating their firm, Horvath and Tremblay are active brokers in the net lease industry and have opened five new offices nationwide, while growing their sales team with minimal departures. In 2020, during the height of the pandemic, the professionals grew their business 35% year over year and in 2021 they doubled that number with 79% year-over-year growth. The pair constantly push to raise money for and allocate time to a number of local, regional and national charities.
CBRE NET LEASE PROPERTIES Will Pike and Chris Bosworth are founding members of CBRE’s corporate capital markets practice and co-lead the firm’s net lease properties group. The net lease properties group got its start in 2004 and it has become one of the net lease sector’s leading teams by transaction volume on an annual basis, as well as one of the most active intermediaries in the space. The team consists of vice chairmen and managing directors Bosworth and Pike, and EVP Brian Pfohl, as well as a team of senior advisors specializing in transacting single-tenant assets, national net-lease portfolios, corporate sale-leasebacks and zero cash flow transactions. As a team, Pike, Bosworth and Pfohl have executed more than 3,950 transactions valued at more than $33 billion throughout their careers. The trio perennially ranks among the firm’s top 1% of producers across North America. They have also accumulated more than $13.58 billion of transactions within the past four years. In March, the team arranged the sale of Shoppes at Woolbright, a 146,759-square-foot shopping center in Boynton Beach. Pike also serves as the global head of retail-occupier capital markets services, in addition to serving as a board member for the firm’s investment properties and Americas brokerage divisions.
COLLIERS NET LEASE INVESTMENT TEAM | CHICAGO Led by EVP Peter Block, the Chicago-based net lease investment team at Colliers has a history of transactional success. In 2021, the team’s transaction value totaled more than $145 million. Originated in 2008, the team has focused largely on restaurant real estate, assisting buyers, sellers, franchisees and franchisors creating deal structures that add value to participants. The team’s advisory leadership and expertise in collecting, managing and sharing critical information sets them apart in the industry. For example, during the supply and demand imbalance, which saw far more demand in capital chasing supply and caused clients to have to make quick decisions when properties hit the market, clients trusted the Colliers team for guidance and its ability to provide robust data and expert judgment to mitigate risks in challenging decisions. Early on in the pandemic, Block’s team hosted a virtual town hall meeting and webinar to share critical information regarding the single-tenant real estate market. The team’s goal was to bring together various industry representatives and provide useful information on how businesses in the retail environment were being affected by the pandemic. Nearly 500 professionals from across the net lease sector attended.
COLLIERS’ SNYDER CARLTON NATIONAL NET LEASE TEAM The Snyder Carlton national net lease team has consistently ranked as the top producing net lease investment team at Colliers since its formation in 2008 and it has remained at the forefront of the net lease sector by consistently setting market cap rates. Led by EVPs Jereme Snyder and Eric Carlton, along with associate VP Spencer O’Donnell, the team has closed thousands of transactions across more than 40 states for a total transaction volume of more than $4 billion. Snyder and Carlton supervise the team of nine experts across the country that specialize in the brokerage of single-tenant, multi-tenant and net-leased investment properties to owners, investors and occupiers on a local, regional, national and international basis. A recent example of the value offered by the team was the sale of a McDonald’s and multiple In-N-Out quick-service restaurants, which sold in the low 3% cap rate range. In 2021, the team achieved its best year with more than 100 transactions and $450 million in total deal volume.
HANLEY INVESTMENT GROUP REAL ESTATE ADVISORS’ BILL ASHER & JEFF LEFKO At Hanley Investment Group Real Estate Advisors, Bill Asher and Jeff Lefko have been top producers since 2018 when they formed their partnership. In 2018, the pair led HIG’s entrance into the net-lease car wash space and they have since generated multiple offers on nearly every car wash property that they have listed with low cap rates. The team is among the top five most active net-lease brokers nationwide at HIG in terms of number of properties sold. In 2021, Asher and Lefko completed a total of $1.9 billion in retail sales including 153 transactions across 25 states, and they are currently leading the company in retail sales in 2022. In addition to working with buyers and sellers throughout California, Asher and Lefko specialize in working with California investors seeking higher yields for well-located, passive retail real estate investments outside of California. As a result, the team has become one of the most active retail brokerage teams in the Midwest in terms of sales with $437 million in Midwest transaction volume within the past three years. The two professionals prioritize the development of meaningful, long-term relationships with clients, and more than half of their sales in recent years have come from repeat clients. Both men share their knowledge through content and Lefko also mentors and teaches college students about investing in real estate.
LEE & ASSOCIATES’ BARR & BENNETT NET LEASED INVESTMENTS GROUP The Lee & Associates net leased investments group, led by principals Ryan Barr and Ryan Bennett, began in 2008 with a focus on transaction quality over quantity. Focused on building relationships and a global proprietary database of investors and developers, the pair strives to provide world-class brokerage services based on personal oversight of each transaction and one-to-one communication. As a result, the two professionals have been able to expand nationwide and include other agents in the firm’s network. Barr focuses on expanding the team’s client base, providing market updates and financial advice, and providing sale-leaseback expertise to franchisees. Bennett focuses on the day-to-day transaction oversight of deals in process, negotiating with potential buyers, and outlining financial strategy with clients to determine the best end results. In the past three years, the team has become a notable competitor in the net lease industry and it has expanded into the industrial/last-mile fulfillment market. Recently, the team has closed on significant transactions, including Amazon distribution and last-mile facilities throughout the Midwest and Southeast; a $54 million, 14-property retail portfolio consisting of various investment-grade tenants; a 513,512-square-foot facility in Geneva, IL; a FedEx portfolio of 10 distribution facilities across the Southwest and Southeast; and an $84 million pharmacy portfolio located across various states. The team has seen its sale price per transaction increase by more than 250% in the past 18 months.
MARCUS & MILLICHAP’S NET LEASE DIVISION Marcus & Millichap’s net lease division, led by national director Daniel Taub, consists of nearly 300 knowledgeable agents that sell single-tenant, net lease assets across the country. A collaborative division, the group identifies targets for capital, while guarding against downside risk to help developers, buyers, sellers and retailers navigate the ebbs and flows of the market and industry. The division specializes in providing advisory and transaction services for all types of single-tenant properties. In 2021, the net lease division closed 2,621 transactions for a value of $6.96 billion. At the forefront of the division are Glen Kunofsky, a licensed broker in New York City; Alvin Mansour, executive managing director of investments in San Diego; and Mark Ruble, executive managing director of investments in Phoenix.
NEWMARK’S NET LEASE CAPITAL MARKETS GROUP Founded in 2017, the net lease capital markets group at Newmark comprises executive managing directors Ken Hedrick and Jerry Hopkins and senior managing director Andrew Ragsdale. The capital markets professionals specialize in the sale, purchase and recapitalization of net-leased retail, industrial, government and office properties nationally. The trio joined Newmark in 2017 to establish and lead the national net lease practice group. Throughout their careers, Hedrick, Hopkins and Ragsdale have closed a combined 500 transactions in all 50 states totaling $5 billion in sales, including the United Nations office building in Manhattan, a national portfolio of CVS properties, a portfolio of convenience stores in Hawaii, 100 FedEx distribution facilities and 66 Tractor Supply Co.-leased locations. In representing the national interests of clients in primary, secondary and tertiary markets, Newmark’s net lease capital markets group works with clients that are buying, selling or developing net-leased properties through a suite of core services, including net lease disposition and acquisition advisory, 1031 exchange transactions, sale-leasebacks, portfolio analysis and optimization, financial analysis, market and demographic evaluation, build-to-suit forward sales, capital markets consultation and financial solutions including credit tenant lease financing.
SAB CAPITAL’S SALE-LEASEBACK GROUP Customization is the priority for SAB Capital’s sale-leaseback group, which was founded in 2019. Led by director Bryan Huber, the team invests time breaking down deals to build customized solutions with each client’s best interest in mind. The group is responsible for leading deal origination and relationship management with lower-to-middle-market businesses, private equity sponsors and investment banks. In the past year, the team has transacted more than $107 million worth of deal volume, while Huber co-launched rigorous outreach campaigns and stringent execution processes. During the height of the pandemic, the team sought long-term investment opportunities that satisfied short-term criteria without compromising transaction quality. SAB’s sale-leaseback team closed nearly half a dozen transactions in the thick of quarantine. Their execution during this period required thoughtful credit enhancement without jeopardizing the client’s proceeds target.
SRS REAL ESTATE PARTNERS’ NATIONAL NET LEASE GROUP Last year was the fifth consecutive year of growth in sales for the national net lease group at SRS Real Estate Partners, closing a record $3.04 billion in deal volume via 830 transactions, which represented a 60% increase over its 2020 deal volume. The team, co-founded in 2016 by Matthew Mousavi and Patrick Luther, has grown to more than 70 investment professionals in more than 25 offices nationally, including the addition of EVP and South Florida market leader Patrick Nutt. In their leadership roles at NNLG, Mousavi and Luther took a long-term view and formulated a plan for the group to survive through the pandemic and beyond. They ensured that the group was low leverage and financially sound, which allowed it to increase market share and grow its revenues despite the impacts of COVID-19. Among the team’s key transactions in 2021 were a $50.8 million deal for a Home Depot distribution center, a $65.8 million deal for the retail center in Phoenix AZ, and a $39.3 million deal for a Service Auto in Hawaii. The group represents more than 1,200 clients and more than 50 million square feet of space across North America.
ORGANIZATIONS
ARCTRUST ARCTRUST employs a proprietary structure of Preferred Asset Vehicles for Real Estate, or PAVRs, to structure transactions that protect capital while combining the cash flow features of corporate bonds with the inherent appreciation of real estate. The firm calls itself “the makers of net lease properties” because it aims to create value through the development, joint-venture, acquisition and lending of real estate, rather than simply aggregating assets. During its nearly 40-year history, ARCTRUST has acquired and developed more than 500 properties with an aggregate value of more than $5 billion. As a fully integrated real estate firm, ARCTRUST has an in-house legal department of lawyers, paralegals and legal assistants, as well as certified public accountants, MBAs, property managers and an in-house engineer. The company’s six managing partners each have an average of more than 30 years of experience in real estate development, acquisition and management, and the firm currently has more than $1 billion in assets under management. The executives of ARCTRUST currently manage several portfolios, including two REITs — ARCTRUST II and ARCTRUST III — an opportunity zone fund and private syndications. Since it was founded in 1985, the company has won numerous industry awards, including the Phoenix award given by the Environmental Protection Agency for the redevelopment of environmentally contaminated sites and an ICSC award for the redevelopment of a historic train station into a shopping center.
ALLIANCE CONSOLIDATED GROUP OF COMPANIES About 15 years ago, Alliance Consolidated Group of Companies shifted its strategy to focus on the largely ignored niche of net-lease medical. By acquiring a variety of healthcare facilities before they became popular investment targets, the firm set itself apart as a leader in the space. Alliance is a privately-held real estate investment firm, specializing in net-leased medical real estate, including orthopedic, cardiology, gastroenterology, oncology, surgery centers, specialty and urgent care clinics, dialysis centers, diagnostic imaging centers, and more. The company’s portfolio spans markets across the US, all of which are operated by Alliance’s in-house management team. The firm acquires numerous properties each year while targeting a variety of net-leased healthcare facilities in geographically diverse markets across the country. By holding assets for the long term, Alliance delivers steady, risk-adjusted returns for its investor clients, including physicians and other high-net-worth individuals. During the past three years, the company has made 19 acquisitions for a cumulative total of $70 million and it has sold eight properties valued at $27 million, which has led to significant investor base growth. Leveraging healthcare real estate’s rapid expansion, Alliance recently launched a $50 million investment fund to pursue net-leased medical and veterinary properties in high-growth markets.
BERKELEY CAPITAL ADVISORS Under the leadership of managing partner Gary Chou and partners Calvin Short, Aron Cline, Ransome Foose and Steve Horvath, Berkeley Capital Advisors has become one of the most active NNN brokerage companies in the country. Founded in 1997, the firm has brokered more than 3,200 transactions totaling more than $16.8 billion. Within the past four years, BCA has closed more than 1,400 transactions totaling more than $4 billion, including one of the largest sale-leasebacks within the auto collision sector and several large portfolios. The company’s leadership team embraces opportunities for change that can breathe new life into the net lease space, including establishing a culture that focuses on diversity, transparency and collaboration. The firm also focuses on coaching, mentoring and guiding young professionals. Prior to joining Berkeley Capital Advisors in 2021, the three partners and leaders of the BCA West team co-founded Matthews Real Estate Investment Services, where they were heavily involved in the company’s early growth strategy and technology development. During their five-year tenure at Matthews, they consistently ranked within the firm’s top three producing agents.
LCN CAPITAL PARTNERS Founded in 2011, LCN Capital Partners is led by co-founders and managing partners Edward LaPuma and Bryan Colwell. As a pioneer in the net lease space since the mid-1990s, LaPuma has led LCN to define the primary market vs. secondary net lease space. The firm’s single strategy is to directly originate and negotiate deals with corporate owner-occupiers instead of purchasing pre-leased properties on the secondary market. As a result, the company offers the opportunity to provide an alternative source of capital to business leaders by monetizing their corporate real estate, while also providing consistent income to investors. LCN is one of the only players in the space with a dedicated team across both the US and Europe. During the height of the pandemic, LCN was able to collect 100% of its rents without having to abate or forfeit any payments; an accomplishment it attributes to strong tenant-client relationships and its underwriting and monitoring of all assets. In 2021, the firm closed on $1 billion of real estate assets, and it additionally closed its largest two funds for a combined total of more than $1.3 billion. Notable recent deals for the firm include Nokia’s state-of-the-art research and development facility in Oulu, Finland, and several facilities that produce the Creminelli Fine Meats and Daniele Inc. charcuterie meats.
NET LEASED MANAGEMENT Serving as a resource for agents and owners nationwide, Net Leased Management manages administration and landlord responsibilities associated with net-leased properties. Founded in 2015, the firm is led by CEO Mike Paeske and net leased portfolio manager Michelle Burns. The firm’s services include rent collection, expense recovery collection, common area maintenance reconciliation, loan covenants and partnership distributions, as well as oversight of vendors for common area site services, property tax payment compliance, landlord and tenant insurance compliance, reciprocal easement agreement and covenants, conditions and restriction management and warranty coordination. Net Leased Management has experienced tremendous growth throughout the past three years by expanding to 74 projects in 20 states. As a division of CFI, a San Diego-based property management company, Net Leased Management is a contributor to the CFI Gives program, which provides charitable contributions for employee-selected charities.
RPT REALTY At the onset of the pandemic, open-air shopping centers developed significant value dislocation — where certain tenants were greatly impacted and other essential tenants performed well, but all tenant types were locked into a single shopping center, causing the asset to trade at a discount. In 2021, RPT Realty embarked on a plan to capitalize on this dynamic by forming a joint-venture with GIC, Monarch Alternative Capital and Zimmer Partners. The partnership, RGMZ, targeted $1.2 billion to $1.3 billion in acquisitions of essential, resilient and high-credit tenants, and so far the partners have deployed $100 million of equity capital in the retail net lease space. As its originator, RPT Realty retains an equity stake in RGMZ and earns management fees from operating the platform’s properties. The creation of RGMZ marked a new model for investing in the outdoor shopping space category and it has allowed cash flows from distinct asset types to be directed to optimal investors, while enabling RPT Realty and RGMZ to collectively pursue assets at a lower cost of capital. Led by president and CEO Brian Harper and managing director Tyler Sorenson, RPT Realty is a REIT that owns and operates a national portfolio of open-air shopping destinations located in top US markets. At the end of last year, the firm’s portfolio consisted of 47 wholly-owned shopping centers, as well as 38 retail properties owned through RGMZ, 10 shopping centers owned through a separate grocery anchored joint-venture, and one net lease retail property that was held for sale by the company. This portfolio represents a combined 14.6 million square feet of gross leasable area.
STAN JOHNSON CO. With a historical focus on the single-tenant net lease sector, Stan Johnson Co. is nearing its fourth decade of operation and has expanded its service platform. Founded in 1985, the firm, led by president and CEO Stan Johnson, provides acquisition, disposition, sale-leaseback, capital markets and advisory services for institutions, developers, investment funds, corporate occupiers and private investors across the US. The firm’s expertise includes single-asset and portfolio sales, as well as sale-leaseback transactions, 1031 exchanges and zero cash flow transactions that span all types of commercial assets including retail, office, industrial, healthcare and specialty properties. The firm has closed more than 6,700 net lease transactions totaling more than $42 billion in sales activity. In the past three years, Stan Johnson Co. closed more than $11.5 billion in net lease transactions, including a two-location portfolio of Midwest grocery stores for $18.7 million, a $12 million Home Depot ground lease in Ohio, a newly-built freestanding restaurant in Nashville that set a new cap rate record for the metro area, and a three-transaction portfolio that included 40 net lease properties across seven states that sold for $75.5 million. In 2021, the firm also launched an affiliate company, Four Pillars Capital Markets — a real estate capital markets brokerage firm that provides debt and equity financing to commercial real estate investors as they acquire or refinance assets.
W. P. CAREY Throughout the years, W. P. Carey has served as an innovator in the net lease space, exemplified by its pioneered models being adopted by other firms. Soon after its founding in 1973, the firm pioneered the pooling of net lease assets into funds that allow individual investors to access the net lease sector. A decade later, the firm began using sale-leaseback proceeds in the capital stack for leveraged buyouts. In 1998, W. P. Carey completed its first sale-leaseback investment in Europe, paving the way for increasing net lease investment activity in Europe. Other investors have followed in its footsteps and today European sale-leaseback activity has become more prevalent. Under the leadership of CEO Jason Fox, W. P. Carey completed a record $1.72 billion in deals in 2021, equivalent to roughly double the amount completed in each of the three prior years. Also in 2021, the company completed its inaugural green bond issuance with $350 million in proceeds allocated to new and existing green projects. This marked the first US dollar green bond issued by a net lease REIT. The firm ranks among the largest net lease REITs with an enterprise value of $22 billion and a diversified portfolio of operationally critical commercial real estate that includes 1,336 net lease properties spanning 157 million square feet.
