LOS ANGELES--(BUSINESS WIRE)--Sentinel Net Lease (“Sentinel”) closed out a very active year with three commercial real estate net lease investments totaling $40MM in the fourth quarter. In total, Sentinel, created by investment veterans Fred Lewis and Dennis Cisterna, acquired nearly $90MM in assets over the past 12 months.
Despite the challenges brought about by COVID-19 to commercial real estate investing, Sentinel has stayed true to its strategy, investing in real estate occupied by tech-centric and essential services companies that can operate successfully in both pandemic and recessionary environments.
The three most recent acquisitions include the Schnucks Fresh Foods grocery store in Peoria, IL for $7.5MM, the CardWorks Customer Service Center in Orlando, FL for $14.3MM and the Quail Commercial Center in Oklahoma City, OK for $18.6MM. These closings were strategic investments during the pandemic year, that showcased confident growth for the firm, investing in resilient commercial net lease real estate properties.
The latest Schnucks acquisition is Sentinel’s fastest deal to date, with a closing inside of 30 days from contract. Grocery stores like Schnuck Markets, Inc. provide a primary essential service, with demand and revenue remaining strong as pandemic shutdowns continue. Sentinel acquired two other Schnucks in Illinois, located in Normal and Loves Park, earlier in 2020 for a combined $18.3MM.
“Schnucks Fresh Food Grocery Stores represent a primary essential service where demand and revenue have remained strong during the COVID-19 pandemic. Additionally, Schnucks is a tech-forward business that participates in online ordering and delivery, which has been the fastest-growing revenue sector in retail over the past year,” said Dennis Cisterna, Sentinel’s Chief Investment Officer, highlighting the benefits of the acquisition.
The acquisition of the CardWorks Customer Service Center was also a significant closing for the firm. CardWorks is a leading servicer of nationally branded MasterCard and Visa cards, private label cards, and secured cards. Cisterna commented on the acquisition, saying, “It was one of our most intricate but worthwhile transactions, as we included a large 1031 exchange investor for the first time. This is a big achievement for our team and investors at Sentinel.”
The service center is a high-quality asset in a highly desirable location within one of Florida’s top suburban office submarkets, South Orlando, a growing and highly accessible region.
“As an essential services investment, credit card processing has proven to be an essential service during the COVID-19 pandemic, with online purchasing increasing dramatically as a result of stay-at-home orders across the nation as well as contact-free transactions,” said Fred Lewis, Sentinel CEO.
The closing of Quail Commercial Center in Oklahoma City for $18.6MM is Sentinel’s largest thus far and is 100% occupied by AT&T and DCP Midstream, which are both credit-rated tenants. Lewis noted, “The competition in the market is fierce for high-quality assets with solid yields. The acquisition of Quail is a testament to our team’s specialized focus and strong diligence in evaluating unique assets. We believe our reputation as an intelligent investor in the space will bring additional opportunities in 2021 and beyond.”
About Sentinel Net Lease
Sentinel Net Lease is a real estate investment firm focused on acquiring and managing recession-resistant freestanding commercial properties generating passive real estate income under long-term, net lease agreements. Their approach combines institutional-quality, data-driven investment analysis with exceptional boots-on-the-ground operational experience and meticulous asset management to deliver strong, risk-adjusted returns.
Visit sentinelnetlease.com for more information.