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-Sean Hostert
Eastbound and down
Real estate advisory firm Savills plc announced a definitive agreement to acquire real estate ‘investment bank’ Eastdil Secured for $1.1 billion.
During 2025, Eastdil generated $633 million in revenue and $113 million in EBITDA implying a ~10x valuation multiple. With 650 total employees (450 client facing), Eastdil’s global business sourced 76% of revenue from North America and 24% from EMEA (Europe, the Middle East, and Africa).
Eastdil Secured financials per Savills plc
In 2019, Eastdil’s management led a buy-out with current/former employees holding 40% of the company’s equity interest while Guggenheim (32%), Temasek (25%), and Wells Fargo (3%) own the remainder. At closing, all groups will roll a portion of their interest into Savills.
Eastdil has long maintained robust participation in the single tenant net lease and sale/leaseback markets, particularly for larger, institutional-size transactions and engagements.
Annual financials
Single tenant net lease-focused non-traded REIT Blue Owl Real Estate Net Lease Trust reported its Form 10-K for 2025 - key disclosures include:
Raised $3.2 billion from sales of common equity shares during the year ($8.2 billion cumulative since inception)
Repurchased $331 million in shares
For its 12/31/2025 NAV calculation, used the below weighted average cap rates:
Industrial: 6.1%
Retail: 6.7%
Office: 7.6%
Land: 10.2%
Full year 2025 investment activity:
Acquired 10 industrial properties, 31 retail properties, and three parcels of land for a total purchase price of $1.4 billion
4Q deals included assets tenanted by Johnson Controls, Flowchem, Marzetti, Citi Trends, United Natural Foods, and ASDA as well as land associated with Skybox and Kraemer Garden deals
Invested $2.1 billion and sold $605 million in real estate debt
Contributed $681 million to acquire additional interests in STORE Capital (owns 22.4% interest)
Made investments in unconsolidated real estate affiliates around net lease data centers ($749 million); investments in real estate debt ($222 million); and net lease ($210 million)
Wholly owned portfolio (excludes STORE and other unconsolidated investments) consists of 272 properties generating $323 million in annual base rent
Amazon-leased properties generated 25.2% of the company’s revenue in 2025 while assets tenanted by McDermott, Inc. generated 9.7%.
Moon Landing
Funds managed by Apollo Global (NYSE: APO) will invest $1 billion for a 49% stake in a joint venture with the largest publicly listed net lease REIT, Realty Income (NYSE: O).
The initial assets, contributed from Realty’s wholly owned portfolio, include ~500 retail properties generating $140 million in annualized base rent (“ABR”) with a weighted average lease term of 9.1 years. Investment grade rated tenants provide 28% of base rent with dollar stores (9.9% of ABR), quick service restaurants (8.3%), and pharmacies (7.9%) accounting for over ¼ of the income.
The contributed portfolio ABR and total JV valuation imply a 7.0% cap rate while the filings note Apollo is targeting a 6.875% unlevered IRR for its stake. Interestingly, Realty Income’s current $58 billion equity market capitalization implies common shares for its entire business trade at a 7.0% yield on the midpoint of management’s 2026 AFFO guidance.
The deal announcement follows a string of other partnerships and private capital initiatives recently disclosed by Realty Income. Will these untraditional structures excite investors or overcomplicate the net lease REIT’s formerly simple story?
Closed ABS
Blackstone backed Reliant Net Lease announced the closing of its $348 million ABS financing with 5-year fixed rate notes. The notes are composed of three rating tranches: AAA (42% of the total principal amount), AA (38%), and A (20%).
Interest rates were not disclosed.
Check out the February 14th edition of the Observer Lite (Observer Lite: 2/14/2026) for additional coverage.
Deal Sheet
-Colliers (Raymond Jonna) announced the sale of the Huntington Bank corporate headquarters tower in Detroit, MI for $156 million. The 2022-construction, 21-story, 480,000 sq. ft. office is subject to a 22-year absolute net lease with 2.0% annual rental increases.
-Marcus & Millichap (Berkley, Ruble, Lind, House) announced the sale of a 18-property early childhood education center portfolio (Yellow Brick Road) for $41.6 million.
-SRS Capital Markets (Chichester, Redfield, Zimmer) announced the sale of a 28,000 sq. ft. Smart & Final grocery store in Huntington Park, CA for $11.35 million.
-Ascension Advisory announced the sale/leaseback of a 3-property industrial portfolio on behalf of Sack Company for $8.9 million. At closing, Sack (a Kassel Company) signed a 20-year absolute triple net lease on the 53,000 sq. ft. of total buildings.
-Four Corners Property Trust (NYSE: FCPT) announced several acquisitions: (i) a corporately operated Carrabba’s Italian Grill restaurant in Florida for $3.4 million subject to a 6-year lease priced at a 6.6% cap rate; (ii) a corporately operated VCA Animal Hospital in Michigan for $3.0 million subject to a long-term triple net lease priced at a 6.6% cap rate; (iii) a corporately operated First Watch restaurant in Wisconsin for $2.8 million subject to a long-term triple net lease; and (iv) a corporately operated Panera Break restaurant in Kentucky for $3.8 million subject to a 6-year triple net lease priced at a 6.7% cap rate.
-Postal Realty Trust (NYSE: PSTL) announced the acquisition of 12 USPS-leased properties totaling 58,564 sq. ft. from entities owned by its CEO Andrew Spodek, and his family, for $11.5 million.
-Lee & Associates announced the sale of a new Starbucks in Mesa, AZ for $3.475 million (representing a 5.3% cap rate). The property is subject to a 10-year net lease.
-Net Lease Office Properties (NYSE: NLOP) announced two property dispositions: (i) a vacant (formerly occupied by Bankers Financial) 168,000 sq. ft. office in St. Petersburg, FL for $22.5 million ($134/sq. ft.); and (ii) a North American Lighting occupied 75,000 sq. ft. office in Farmington Hills, MI for $12.7 million ($169/sq. ft.). NLOP also announced a special cash distribution of $3.30/share payable in mid-April.