Montgomery Street Partners Launches Ground Lease REIT, a $1 Billion Vehicle to Invest in Ground Leases Nationally

DALLAS--()--Montgomery Street Partners ("MSP"), a diversified commercial real estate investment firm, announced today the formation of a new venture with a U.S.-based Fortune 500 global insurance company to invest in ground leases in the Top 50 U.S. metropolitan markets. The venture will operate under the Ground Lease REIT (“GLR”) banner, with Montgomery Street Partners acting as the REIT’s external manager.

The REIT intends to deploy $1 billion of gross capital over the next several years through the origination of ground leases on well-located real estate assets across all property types. GLR will also acquire existing ground leases that fit its investment criteria. The venture will target ground-up developments, re-developments, and existing cash-flowing properties.

MSP also announced the expansion of its operations with a New York office. MSP is taking space in 315 Park Avenue South, a class A office building in the Midtown South submarket. The lease marks MSP’s first East Coast office and supports its efforts to advance GLR’s investment strategy.

Moreover, MSP has made two senior-level hires who will focus on deploying capital for GLR. Max Nipon joins as Senior Vice President from Wells Hill Partners, a premier real estate investment banking firm. Prior to Wells Hill, Mr. Nipon worked at ING REF. Max Bartmann joins as Vice President from Tribeca Investment Group, a New York-focused real estate investor and developer. Prior to Tribeca, Mr. Bartmann worked at JP Morgan.

Murray McCabe, the Managing Partner of Montgomery Street Partners, commented: “We believe this is an extremely compelling opportunity for investors to gain access to long-duration, inflation-protected real estate assets that are cycle tested. Equally, we believe ground leases to be an efficient and accretive financing alternative for real estate owners and developers. Ground leases have evolved to become a more acceptable and mainstream financing tool in both primary and secondary markets as real estate owners and developers gain a greater appreciation for the merits of the product.”

Raymond James acted as financial advisor to Montgomery Street Partners in connection with the transaction.

About Montgomery Street Partners

Montgomery Street Partners (“MSP”) is a diversified commercial real estate investment firm that invests across property types and geographies. MSP’s primary investment strategy is to pursue programmatic GP equity co-investments with established institutional quality operating partners who operate in a well-defined real estate sector or theme. Additionally, MSP pursues strategic entity and platform investments in real estate operating companies, as well as limited partner investments in individual assets. MSP has acquired more than $3 billion of real estate assets, representing $1.3 billion of equity value since its founding in 2013. For further information, please visit https://www.montgomerystreetpartners.com/.

About Ground Lease REIT

Sponsored and managed by Montgomery Street Partners (“MSP”), Ground Lease REIT (“GLR”) is a dedicated vehicle specializing in the origination and acquisition of unsubordinated long-term ground leases. GLR’s investment strategy is to acquire existing and originate new 99-year senior unsubordinated ground leases on developments, value-add projects and stabilized assets across all property types in the top 50 U.S. MSAs. MSP has acquired and developed over $3 billion of commercial real estate since 2013, with a focus on niche, durable real estate sectors, including manufactured housing, student housing, seniors housing, affordable living, self-storage, infill industrial, and other opportunistic investments. For more information, please visit www.glreit.com.

Contacts

Media Contact:
pr@mspcm.com

Contacts

Media Contact:
pr@mspcm.com