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CBRE IM buys Tenet Equity net lease business for $1.6B
The deal adds a platform with 12 million square feet of assets across 39 states, and CBRE plans a new net lease investment strategy to expand further.
CBRE Investment Management has acquired Cerberus Capital Management’s Tenet Equity net lease business for $1.6B, with both sides announcing the transaction in separate releases, according to Bisnow. CBRE said it made the investment on behalf of several of its investment strategies, but did not specify which ones.
Tenet Equity is tied to net lease real estate arrangements where tenants typically cover costs associated with ownership, such as insurance, maintenance, and taxes, often structured as leaseback deals. Cerberus formed Tenet Equity in 2021 as a REIT backed by institutional capital focused on middle-market tenants.
CBRE said the acquired portfolio totals 12M SF across the U.S., with properties in 39 states and more than 65 tenants. CBRE Investment Management also said it is launching a new strategy for additional net lease investments, led by Akash Shivashankara, a senior portfolio manager at CBRE IM.
In its release, CBRE IM conservatively estimated that several trillion dollars of corporate-owned operational real estate in North America sits on the balance sheets of middle market companies, with institutions holding just 1% of the addressable market. Truist Securities served as CBRE IM’s financial adviser, Evercore advised Cerberus, and Kirkland and Ellis was Cerberus’ legal counsel.