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Brennan and Arch Street Acquire Four-Building, 2.3 Million SF Industrial Portfolio

Chicago, February 12, 2018

Brennan Investment Group, LLC, a private real estate investment firm that acquires, develops, and operates industrial facilities, announced its purchase and simultaneous leaseback of four buildings to BlueLinx Corporation (NYSE: BXC) in a joint venture with a client of Arch Street Capital Advisors, LLC. The portfolio, located in four states and totaling 2,306,835 square feet, is geographically dispersed throughout several top markets in the United States including Boston, Raleigh-Durham, Atlanta, and Washington, D.C. BlueLinx is a leading distributor of building and industrial products in the United States and operates through a broad network of distribution centers.  Since 2011, through multiple ventures, Brennan and Arch Street have acquired over $1 billion of single tenant, net leased, industrial assets.

“We acquired four strategically important facilities of BlueLinx, an established tenant with long-term commitment to the areas,” said Scott McKibben, Chief Investment Officer at Brennan Investment Group. “This acquisition is consistent with our investment objective of producing stable, long-term cash flow for our investors.”

“Over the past seven years, Arch Street and Brennan have been very active investors in the single tenant, net leased, industrial space and have developed an expertise for originating, evaluating, acquiring and financing single tenant, net leased, industrial assets,” said Anup Patel, President and Chief Investment Officer at Arch Street Capital.

“We are pleased to acquire another net leased industrial portfolio with Arch Street. This acquisition demonstrates the breadth and depth of our net lease platform. We have the ability to both acquire large portfolios as well as aggregate individual long-term net lease assets,” said Robert Vanecko, Brennan Investment Group’s Managing Principal and the head of the firm’s single-tenant, net lease division. “We are excited to add these properties to our growing portfolio. We have a strong appetite for additional properties that meet our criteria.”

Brennan and Arch Street continue to seek single tenant, net leased industrial investments meeting the following criteria:

  • location in the top 100 U.S. markets,
  • remaining lease term of at least ten years,
  • non-investment grade credits,
  • “mission critical” properties with significant facility investment by the tenant, and
  • all industrial facility types, including manufacturing, assembly, R&D and distribution.