ElmTree Funds, a St. Louis-based private equity real estate firm focused on the commercial real estate net-lease sector, announced the launch of two perpetual-life real estate investment trusts (REITs) to acquire and manage a diversified portfolio of U.S. net lease industrial properties.
ElmTree Industrial Trust Inc. is available to registered investment advisors and ElmTree Industrial Access Trust is available to independent broker-dealers. The REITs expect to primarily invest in single-tenant, stabilized, income-producing industrial properties with long-term net leases, along with similar build-to-suit industrial properties. The REITs may also originate loans secured by industrial properties or invest in real estate-related securities.
For its initial investment, the REITs acquired a 169,543 square-foot industrial property located in St. Louis that is 100% leased to the BASF Corporation. The REITs will offer an unlimited number of shares to accredited investors at an initial purchase price of $1,000 per share.
“Industrial real estate has long been a cornerstone of the U.S. economy, and we believe the sector’s strong fundamentals will remain attractive over the long-term,” said James G. Koman, ElmTree’s CEO and founder. “With the growth of e-commerce, the reshoring of supply chain operations, and the movement from just-in-time inventory to just-in-case inventory, we believe that tenant demand will continue to outpace supply for the foreseeable future, resulting in positive net absorption and rental growth going forward. We are very excited to launch these offerings and to pass these opportunities on to our partners.”
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