Dallas-Based Real Estate Investment Firm, The Landes Group, Acquires 27 Properties in $86 Million Deal
The Landes Group, a privately held real estate investment firm, announced its acquisition of 27 retail properties in a transaction valued at $86 million. The 563,000-square-foot portfolio consists entirely of single-tenant net leased assets, including five Wawa locations, ten Walgreens, eight CVS Pharmacy stores and four Service King Collision Repair shops. Collectively, the assets in the portfolio are located in 12 states.
“Landing this portfolio is a huge win for us. There were a handful of buyers still vying for the deal on the best and final offer round; however, we emerged as the lead buyer because of our ability to determine the value of the entire portfolio, including the underlying real estate value of the zero cash flow assets,” said Justin Grissen, Chief Investment Officer for The Landes Group.
Upon officially closing at the end of 2018, the deal became the most diverse portfolio to-date for the firm, which invests in tenants it believes to be industry-stable while maintaining long-term value through any volatile economic cycles. Each property in the portfolio is currently occupied under long-term triple net leases in locations that consistently see high-traffic volumes.
According to The Landes Group Founder and CEO Brett Landes, “2018 was a very active year for us in which we closed 65 net lease transactions. Our strategic relationships with tenants across the country ensure we create value for both our tenants and our investors. We are excited to enter 2019 with a healthy book of business, expecting to close on 35 assets in the first quarter. In our increasingly tumultuous economic environment, we consider the single tenant retail business to be a solid staple, particularly in areas where we anticipate steady growth.“
Key partners in the transaction include US Bank, JLL and the law firm of Leichty, McGinnis, Berryman & Bowen.
About The Landes Group
The Landes Group is a Dallas-based privately-held real estate investment firm focused on assisting corporate real estate users and investors optimize the economics of their real estate portfolios. The firm specializes in yield optimization through innovative debt and lease restructures, sale-leaseback transactions, re-tenanting opportunities and 1031/1033 tax-deferred exchanges. Since 2006, the firm, along with its affiliates, has closed more than $16 billion in transactions which have been entirely focused on single tenant leased assets, resulting in solid, long-term relationships with multiple Fortune 500 companies.