Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Tuesday, 28 January 2020

Brennan Buys More BlueLinx Industrial Properties

Written by 
Rate this item
(0 votes)

Brennan Investment Group has purchased four industrial properties with 783,889 square feet from BlueLinx Holdings, a distributor of building products, and leased them back to the Atlanta company.

Brennan, a Chicago investment manager, which in the past has purchased other properties from BlueLinx, is believed to have paid about $34.1 million, or nearly $43.50/sf, for the latest portfolio. Properties in the portfolio were constructed between 1965 and 1996, and are in the Kansas City, Nashville, Tenn., Richmond, Va., and St. Louis areas. They include 16,670 sf of office space.

Brennan last year had raised $100 million for a fund that would target industrial properties net leased to single tenants. The fund, a venture with Arch Street Capital Advisors, previously had purchased other properties from BlueLinx. And in 2018, Brennan had paid $110 million for four other BlueLinx industrial properties with 2.3 million sf. That deal allowed BlueLinx to retire a long-troubled CMBS loan.

The buildings in the latest portfolio were underwritten to generate $2.3 million of net operating income, giving Brennan's purchase price a capitalization rate of 6.75 percent. BlueLinx occupies them under leases that run through 2037.

The properties are:

- 13860 Corporate Woods Trail, with 241,053 sf in Bridgeton, Mo.;

- 1727 Warren St., with 235,922 sf in North Kansas City, Mo.;

- 700 Myatt Drive, with 152,000 sf in Madison, Tenn.; and

- 4700 Bethlehem Road, with 154,914 sf in Richmond, Va.

Brennan's latest investment was funded with a $22.7 million loan that Societe Generale had provided and will include in an upcoming CMBS conduit transaction. The loan requires only interest payments for its five-year term and pays a coupon of 4.38 percent.

Comments? E-mail Orest Mandzy, or call him at (267) 327-4281.


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Sector: Industrial
  • Subject: Property Acquisitions (ACQ)
  • Private: No
Read 797 times

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds