Trinity Capital Advisors Launches Net Lease Investment Platform
February 24, 2010
Trinity Capital Advisors, a Charlotte, NC-based real estate investment manager, has launched a Net Lease Investment Group. The group will originate sale-leaseback transactions of industrial and warehouse property with middle-market companies, acquire properties with existing long-term net leases and will leverage Trinity Capital Advisors’ development expertise when assisting companies with their facility expansion needs. The new platform will be led by Managing Directors John Conklin and Scott Herr, and will utilize existing committed equity from Trinity’s second fund.
Mr. Conklin and Mr. Herr will target properties located in the Southeast and Sunbelt regions that are mission critical to a business and range in value from $3 to $50 million. The typical sale-leaseback transaction allows the seller to receive cash in exchange for a fee simple interest in the real estate, subject to an absolute, triple net lease. The seller retains operational control of the real estate while benefiting from immediate access to capital. Most often, sale-leaseback proceeds are used to expand the business via acquisition, restructure the balance sheet or return capital to investors.
According to Mr. Conklin, “Sub-investment grade companies, and particularly middle market businesses, continue to have trouble accessing capital through traditional lending sources. A sale-leaseback can serve as an important source of financing for otherwise qualified borrowers.”
Gary Chesson, Partner of Trinity Capital Advisors, added, “We’re excited to be able to diversify through this net lease platform – it will offer a compelling investment strategy and current income for our fund. Johnny and Scott come to us with a wealth of single tenant investing experience and we look forward to providing all the support they need to make the strategy successful.”
About Trinity Capital Advisors
Headquartered in Charlotte, Trinity Capital is a private real estate investment company focused on providing superior risk adjusted returns and capital appreciation to its high net worth and institutional investor partners through selective development, acquisition and redevelopment of office, industrial and mixed use real estate throughout North and South Carolina. Trinity Capital has acquired or developed notable office buildings, industrial parks, and mixed use projects including 440 South Church, Perimeter Woods, Westlake Business Park, and Trinity Commerce Center. To learn more about Trinity Capital, please visit www.trinitycapitaladvisors.com.