REAL ESTATE NEWS

Tanenbaum Equity Partners (TEP) has recapitalized a portfolio that supports 30 federal government agencies and takes the total value of the properties to roughly $450M.

This comes courtesy of preferred equity investment from TEP Principals and Eagle Point Credit Management LLC, as well as senior debt provided by Centennial Bank.

Sunny Sajnani, CEO of TEP, said in a statement that the move will give the firm, which focuses on government-leased properties, a long-term capital structure, flexibility to lay the groundwork to deploy its acquisition strategy and it speaks to the strength of the portfolio itself.

The portfolio includes a total of 98 properties across 24 states. Also, the 1.6 million square feet in total space is 98 percent occupied, with the average remaining lease term coming in at 5.2 years.

Raymond James served as the exclusive financial advisor to TEP on the deal.

"Federal agencies continue to rely on specialized facilities owned by the private sector, creating durable demand for well-located government-leased assets," Becky Tanenbaum Mallace, chief operating officer of TEP, said in a statement.

"Through disciplined acquisitions, proactive asset management, and a strong lease renewal track record, we've built a portfolio designed for long-term performance. This recapitalization positions us to continue executing that strategy for years to come."

According to Eagle Point, government-leased real estate offers "attractive risk-adjusted characteristics" and durable cash flows. Sajnani said Tanenbaum currently operates one of the largest privately owned real estate portfolios leased to federal agencies. According to the company, it has over 120 assets, spanning more than 2 million square feet.

TEP operates under Gardner Tanenbaum, whose total commercial footprint now spans more than 8 million square feet.

Source: GlobeSt/ALM