Brennan Investment Group (“Brennan”), a U.S. based real estate firm, and a client of Arch Street Capital Advisors, LLC (“Arch Street”), a Greenwich, Connecticut based real estate investment advisory firm, have announced the formation of a joint venture to own and manage a substantial portfolio of industrial properties throughout the United States. The venture will focus on acquiring individual industrial assets in major markets in the United States that are critical facilities to tenants, leased on a long-term basis. In conjunction with the formation of the Brennan/Arch Street venture, PNC Bank, N.A. (“PNC”) provided the venture with a financing line of credit facility to enhance the venture’s efficiency in closing both portfolio and individual asset purchases.
Simultaneous with the venture’s formation, the venture acquired its first assets, a three building 174,170 square foot industrial complex in Hamilton, Ohio, leased to Matandy Steel and Metal Products LLC.
Brennan and Arch Street formed three ventures in 2012 and 2013. Together the parties have acquired 64 properties comprising 9.7 million square feet, located in 40 MSA’s across the United States. Arch Street was advising its client Gatehouse Bank, a Sharia-compliant bank based in the City of London, in these ventures.
“We are pleased to launch this venture at a time when we see opportunities to invest in mission critical facilities throughout the country” commented Michael Brennan, Chairman and Managing Principal of Brennan Investment Group. “The objective of the venture’s investment criteria remains the same: generate strong risk adjusted returns, derived from both cash flow and appreciation”. The industrial property markets in the United States continue to demonstrate considerable strength, with national industrial occupancy rates improving for the 16th consecutive quarter.
Anup Patel, President and Chief Investment Officer at Arch Street Capital Advisors, commented “We are pleased to enter into our fourth venture with the Brennan Investment Group. Arch Street seeks to partner with best-in-class operators such as Brennan with demonstrated expertise in specific real estate sectors. This venture will capitalize on Brennan’s expertise in U.S. industrial real estate to generate compelling risk-adjusted returns”.