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Tuesday, 28 January 2020

Brennan Buys More BlueLinx Industrial Properties

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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.



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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Industrial
  • Subject: Property Acquisitions (ACQ)
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

RCA CPPI

 

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CMBS 2.0 Spreads

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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

 

 

 

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