Elm Tree Funds Acquires Five Properties for $275M

Net lease private equity manager Elm Tree Funds has acquired five assets for $275 million on behalf of its flagship fund, ElmTree U.S. Net Lease Fund IV.  The recent acquisitions include 1.5 million square feet of Class A logistics and office assets, each of which is fully  leased to an investment grade tenant, on a long-term basis. 

St. Louis-based Elm Tree Funds launched its flagship fund, ElmTree U.S. Net Lease  Fund IV, in July of 2020 with an investment strategy consisting of investing in the top MSA’s in the U.S., focusing on industrial  assets leased to credit tenants on a long-term basis. Since the fund’s final close in October 2021, which was  oversubscribed at $888 million, ElmTree has remained active in the market and carried its momentum into 2022.  

The firm continues its strategic sourcing of investment opportunities through funding build-to-suit developments  and acquisitions of mission critical industrial and office assets. “We are seeing robust build-to-suit activity across the country, particularly in the  industrial sector as corporations are aggressively expanding their supply chains to meet growing e-commerce  demand and shorten delivery times”, said CEO and Founder, Jim Koman.  

The latest string of deals expands across the southern U.S. regions and boasts a diverse tenant roster of  investment grade companies, including Google. These recent acquisitions feature an average in-place weighted  average lease term of over 11 years, a weighted average credit rating of BBB  and are in some of what ElmTree  believes are the nation’s most desirable markets, including Texas, North Carolina, and Tennessee.