KKR creates a platform to buy real estate with triple net leases

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Posted on 28.08.


Some institutional investors are betting on triple rental network (NNN) properties as record US inflation could boost cash flows to these types of properties. KKR has established strategic rental partners, a new platform for investing in a diversified portfolio of three-tier rental properties. KKR’s investments, mainly from loan and real estate funds, will enable the platform to acquire assets worth over US $ 3 billion. Former net lease investors Andres Dallal and Joseph Mastrocola will join Strategic Lease Partners as partners, working with KKR’s Real Estate, Loans and Capital Markets teams to acquire NNN properties and provide sale and leaseback solutions for corporate tenants. Prior to establishing the KKR platform, Dallal and Mastrocola were executive directors at WP Carey Inc. where they were responsible for sourcing, evaluating, negotiating and structuring net investment in leases in North America. In the second quarter of 2021, WP Carey REIT committed $ 780 million to new opportunities at a weighted average capitalization rate of 5.6%.

Carlyle Group
In early May 2021, Carlyle Group Inc. through its Global Credit platform, has agreed to provide up to $ 300 million in growth capital to the New York-based Four Springs Capital Trust, a private real estate investment firm (REIT) focused on the acquisition, ownership and active management of a portfolio of income-generating real estate with one tenant throughout the United States on a long-term net lease. Four Springs plans to use the funds to expand its portfolio, which currently includes 122 properties in 29 states. At that time, 122 Four Springs properties were leased to 56 unique tenants of 31 types of tenants, divided into three main types of property: industrial, medical and retail.
The trust’s major clients include Caliber Collision, Amazon.com, Inc, GAF, CVS Caremark, and Horizon Healthcare. Carlisle has developed a comprehensive and differentiated view of many of Four Springs’ tenants, drawing on the knowledge gained from direct investment in many of these tenants or past efforts towards them and their competitors. Carlyle’s $ 59 billion Global Credit platform regularly mobilizes private equity solutions for above average borrowers, including both private equity and family-owned or entrepreneurial businesses.

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