Elm Tree Funds buys six properties for $300 mln

Elm Tree Funds, a real estate private equity firm, has acquired six single-tenant industrial, healthcare and office properties in Michigan, Missouri, South Carolina and Alabama. The total price of the transactions was $300 million.


ST. LOUIS (July 16, 2018) – ElmTree Funds, LLC, a leading real estate private equity firm, is pleased to announce that it has acquired six assets in transactions totaling $300 million. The assets include six single-tenant industrial, healthcare and office properties in Michigan, Missouri, South Carolina and Alabama, representing a weighted average credit rating of A-.

ElmTree, which is focused on the acquisition and operation of single-tenant office, industrial and healthcare properties across the United States, acquired its latest real estate assets in recent months. The assets consist of three office properties, two industrial properties and one healthcare property, and they collectively represent more than 2 million square feet. Each property is fully leased, and five of the six buildings acquired are build-to-suit properties.

“We continue to identify compelling net lease acquisition opportunities and seek transactions in the marketplace,” said Jim Koman, managing principal at ElmTree Funds. “These transactions represent ideal purchases for us as the properties are located in fundamentally strong markets with tenants under long-term leases.”

At 375,466 square feet, one of the highlights of the new acquisitions is a build-to-suit industrial development in Valley, Ala., which is leased to WestRock Company. Another highlight is a 1.2 million-square-foot build-to-suit industrial property located in the Southwest, which is leased to a confidential investment-grade tenant. ElmTree was able to source these assets utilizing its vertically integrated platform, which includes expertise in real estate development, construction management, property management and capital markets.

The other assets include:
· 210,126-square-foot office property in Greenville, S.C. leased to Jacobs Engineering Group, Inc.
· 115,000-square-foot build-to-suit office property in Detroit, Mich., leased to Hella KGaA Hueck & Co.
· 100,000-square-foot build-to-suit office property in Detroit, Mich., leased to Tenneco Inc.
· 15,720-square-foot build-to-suit healthcare property in Kansas City, Mo., leased to Baxalta, Inc.

About ElmTree Funds:
ElmTree Funds, LLC is a leading real estate private equity firm and seasoned fund manager to institutional and private investors. ElmTree’s investment philosophy focuses on creating attractive risk-adjusted returns for its investors in the commercial real estate net lease, sale-leaseback, and build-to-suit sectors. Since its founding in 2011, ElmTree Funds has acquired, developed or financed more than $6 billion of office, industrial and healthcare properties. ElmTree Funds targets investments in secondary and tertiary markets across the United States that are leased to investment grade tenants on a long-term basis. ElmTree Funds is headquartered in St. Louis, Missouri. For more information please visit www.elmtreefunds.com.