Easier to follow than Nolan’s Tenet
Asset managers continue their hunt for net lease platforms with two additional announced deals in just the last three weeks. Cerberus Capital Management said Tuesday it sold Tenet Equity and its net lease portfolio to CBRE Investment Management for $1.6 billion. This follows Goldman Sach’s press release noting it will acquire net lease investment manager LCN Capital Partners for up to $410 million ($150 million deferred and contingent on performance / service commitments).
Important to note the Tenet-CBRE includes real property assets (no portfolio details or cap rate was disclosed) while the Goldman-LCN deal includes only the management company (LCN’s $3 billion in assets under supervision are owned by institutions, insurers, and high-net-worth individuals).
Both Tenet and LCN invest often via sale/leaseback transactions with industrial and service retail as common property types, although limited disclosures are available.
Thankfully net lease is much simpler than Christopher Nolan’s film…
The Goldman-LCN deal announcement provides some insight into historical return profile: “LCN calculates performance across its platform as an average annual 10.8% net cash-on-cash returns since inception.” Interestingly, annualized total return for listed REITs STAG Industrial (NYSE: STAG) and W.P. Carey (NYSE: WPC) equate to roughly 13.4% and 10.8%, respectively since the start of 2011.
LCN performance time frame details are scant (only includes ‘fully invested flagship funds’ as of 3/31/2026), but the comparison begs the question - what is the cost of liquidity/transparency/leverage?
Goldman Sachs CEO David Solomon remixing the intersection of credit and real estate
Overall, the larger take-away is simple: investors love net lease (IL Net Lease). With four listed net lease REITs taken off the board in 2026 (closed: Peakstone, Sila, & Modiv; pending: LXP) and two recent private managers exchanging ownership, platform transaction velocity has accelerated. Which manager and/or portfolio is next?
Above average
Net lease non-traded REIT equity capital raise returned above $400 million in September (note, Blue Owl & North Haven values are preliminary prior to mid-month feeder filings). The Big 4 have raised just south of $3.5 billion with 25% of the year remaining. Fortress continues to climb the rankings with September’s $137 million representing its highest month in history.
Other insights
-Brennan Investment Group announced the recapitalization of two industrial portfolios totaling 22 buildings and roughly 1.2 million square feet in Moorestown, NJ and Nashville, TN
-Broadstone Net Lease secured land and began construction on two build-to-suit properties in Manor, TX (Hobby Lobby and Academy Sports) adding $23 million to its development pipeline. The estimated cash cap rate is 7.1% with 15-year leases for both sites and completion is anticipated by June 2027.
-Postal Realty Trust received its inaugural investment-grade BBB rating from Fitch (covering its revolving credit facility and unsecured term loans)
-Brokerage CrownPoint Partners announced the successful closing of $26 million in healthcare sale-leaseback transactions for properties occupied by The Neighborhood Clinic. The deals were structured with 30-year net lease terms featuring 2% annual rent increases.
-Industrial Realty Group, PREP Funds, and CG Real Estate Capital announced the completion of a sale-leaseback transaction with Anchor Manufacturing for a three-property industrial portfolio totaling ~340,000 square feet on 18 acres in Cleveland, OH.
-ExchangeRight fully subscribed its $63 million Net-Leased Portfolio 74 DST at 11 properties across nine states leased to investment-grade tenants including Tractor Supply, Dollar General and CVS with a 16.3-year weighted-average lease term and 5.00% annualized distributions. The portfolio includes $26.75 million in non-recourse debt (noted as 42% LTV).
-Royal Oak Realty Trust acquired a 78,000 square foot industrial manufacturing facility situated on 4.8 acres in Columbus, OH through a sale-leaseback transaction. The property is leased to Hub Plastics and has served as the company’s headquarters since it was founded in 1971.