Orion and Secure Properties Target $500M of Investment in Net Lease Fund
Orion Real Estate Group and Secure Properties have joined forces in launching a net lease fund, aiming to take advantage of the new tax code under the One Big Beautiful Bill Act.
The Orion Pro Fund 2026, LP is looking to raise as much as $200 million, with more than $500 million in investment power. The vehicle will look for net lease properties that are eligible under the 100% bonus depreciation, which was reinstated under the OBBBA and applies to all qualifying assets placed into service after Jan. 19, 2025, through Dec. 31, 2029.
Also, the fund's strategy will seek single-tenant assets that combine "durable cash flow" and tax advantages. Kevin Sanz, president at Orion Real Estate Group, said that the fund also aims to provide investors with access to passive investments.
SURMOUNT is advising the fund that includes a number of sponsors — all of whom have together identified its first net lease portfolio that would feature qualifying net lease properties. It's unclear where they are located, but the sponsors bring transactional experience in the gas station, oil change and car wash sectors. This includes the purchase of 70 convenience stores and more than 100 car washes over the past three years alone.
The portfolio opportunity is expected to close some time this year, according to Orion and Secure Properties.
"The restoration of 100% bonus depreciation created a compelling window for investors to capture significant tax benefits while building positions in durable, income-producing real estate," Glen Kunofsky, CEO and founder of SURMOUNT, said in a statement.
"Seeing that window open is the result of restored legislation and we believe this fund is exactly the kind of vehicle built to take advantage of this restored benefit for investors."
Overall, the sponsors have acquired more than $1 billion through similar vehicles and have combined for over $3 billion in related transactions since 2018. Also, SURMOUNT's experience includes advising on over $6 billion in bonus depreciation sales in the auto sector and taking more than a 70 percent market share in the car wash segment during 2025.
Currently, in the net lease auto parts chain sector, Advance Auto Parts is leading in volume, according to Matthews data, with 15 transactions year-to-date in 2026, on top of 36 in the first half of 2025 and 62 in the second.
Source: GlobeSt/ALM