Northstar Commercial Partners recently announced the successful acquisition of an attractive 24-property national U.S. portfolio, with a final purchase price of $224 million.
The diversified, value-add portfolio spans coast to coast, with various locations in twelve states. Thirteen of the properties are industrial warehouse & manufacturing facilities, eight are office buildings, and three are retail assets – totaling 5,918,835 square feet on 486 acres. Twenty-two properties have officially closed, with the last two in final stages of acquisition.
Several large, corporate brands currently occupy space as tenants, including well-known entities such as: Time Warner Cable – the second largest cable company in the U.S, Bechtel Corporation – the largest construction and civil engineering company in the United States, ATSG – one of the largest distribution holding companies worldwide, Dollar Tree – a chain of discount variety stores operates 5,000 stores throughout the 48 contiguous U.S. states and Canada, and Progressive Corporation – one of the largest providers of car insurance in the United States.
Northstar purchased the portfolio from Mr. Moshe Silagi, President of Silagi Development & Management (SDM). The value-add opportunity attracted investors not only nationally, but also on a global scale – including ALTO Real Estate Funds, a U.S. firm that invests funds raised in Israel.
For over sixteen years, Northstar Commercial Partners has specialized in buying vacant or highly distressed assets and placing them back into full productivity, in order to create jobs and opportunities for Americans throughout the Country.
“This deal is the most significant acquisition in Northstar’s company history, bringing along with it our largest opportunity to date to create a positive impact for businesses and local communities nationwide,” Brian Watson, Northstar’s Founder & CEO, said. “It is very rare in this economic environment to acquire an off-market deal of this magnitude, diversity, and low occupancy rate, in order to drive very attractive opportunistic level returns.”
Twenty-one of the facilities included in the 24-property acquisition are located in towns or areas with high unemployment, often times well above national and state averages.
Watson, who personally invested nearly two years into acquiring this off-market portfolio, explained: “The fact that the vast majority of these properties are found in places where people need work, and are looking for greater opportunity, makes us at Northstar all the more eager to be involved.”
Northstar plans to work diligently to increase the overall occupancy rate of the portfolio, which is currently ±70% attracting new businesses to these communities, translating directly into jobs and other valuable local resources.
“At Northstar we’ve always sought to set ourselves apart in the commercial real estate space in a variety of ways,” Watson commented. “Not only do we focus on a unique niche within the industry by buying vacant or highly distressed commercial real estate assets at 50% or less of their replacement cost values, this in turn creates an enormous amount of renewed productivity for business and community alike. We’ve been able to inherently connect our profession with our passion of empowering people, by creating true opportunity for them.”
“The future is always bright when your business is a platform to meet the needs of others, which in this case, is exceptional real estate solutions that create jobs and opportunity in the process. This most recent national acquisition will continue to solidify this identity at Northstar and guide us all moving forward,” Watson concluded.
About Northstar Commercial Partners
Founded in 2000 by Brian Watson, Northstar Commercial Partners is a privately held commercial real estate investment company headquartered in Denver, Colorado.
Northstar acquires and operates attractive commercial real estate opportunities throughout the Nation and orchestrates all aspects of the investment from initial concept through to completion.
Northstar has purchased assets from a multitude of Fortune 500 companies including, but not limited to: Shell Oil Co., GE, Columbia House, Ball Corporation, Loomis, Cargill and a national portfolio of real estate from The Benjamin Moore Paint Co., in addition to many individual assets from other owners, lenders and companies.