Eagle Point Credit Management has backed the recapitalisation of Tanenbaum Equity Partners鈥� $450m (鈧�395m) US government-leased 1.6m sqft nationwide real estate portfolio by way of a preferred equity investment.
The recapitalisation of the 98-property TEP Government Holdings is also supported by senior debt from Centennial Bank alongside equity from TEP鈥檚 principals.
The portfolio spans 24 states and is 98% occupied across 30 federal government agencies, with a weighted average remaining lease term of 5.2 years, TEP said.
Sunny Sajnani, CEO of Tanenbaum Equity Partners, said: 鈥淥ver the last decade, we鈥檝e built one of the nation鈥檚 largest privately owned portfolios of federally leased real estate.
鈥淭his recapitalisation establishes a long-term capital structure that reflects the quality and stability of our assets while creating a strong foundation for the next phase of our acquisition strategy.鈥�
Richard Tanenbaum, chairman of Tanenbaum Equity Partners, said: 鈥淚鈥檝e spent my career focused on building real estate platforms that can perform through changing market cycles, and this transaction reflects that same long-term philosophy.
鈥淲hat the TEP team has built in the government-leased sector is exceptional. This recapitalisation validates the strength of the portfolio and gives us the flexibility to continue growing it thoughtfully for the next generation.鈥�
Jaime Milgram, vice president at Eagle Point, said: 鈥淕overnment-leased real estate offers durable cash flows and attractive risk-adjusted characteristics. TEP has assembled a high-quality portfolio that aligns well with our investment strategy, and we鈥檙e pleased to support the platform鈥檚 next stage of growth.鈥�
Becky Tanenbaum Mallace, COO of Tanenbaum Equity Partners, said: 鈥淔ederal agencies continue to rely on specialised facilities owned by the private sector, creating durable demand for well-located government-leased assets.
鈥淭hrough disciplined acquisitions, proactive asset management, and a strong lease renewal track record, we鈥檝e built a portfolio designed for long-term performance. This recapitalisation positions us to continue executing that strategy for years to come.鈥�
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