Key Takeaways
- • CBRE Investment Management acquired Tenet Equity's $1.6 billion net-lease platform from Cerberus Capital Management, expanding its real estate portfolio by 208 assets across 39 states totaling 12 million square feet.
- • The portfolio is fully leased to middle-market industrial tenants with an average lease term of approximately 17 years, providing long-duration cash flow characteristics with minimal capital expenditure requirements.
- • Tenet Equity will remain an operating partner alongside CBRE Investment Management, with senior portfolio manager Akash Shivashankara appointed to lead the joint platform management and growth strategy.
- • CBRE IM, managing $155 billion globally, positions the net-lease acquisition as a hedge against persistent inflation, leveraging long lease terms and tenant-paid operating expense structures (taxes, insurance, maintenance) typical of the net-lease model.
- • Truist Securities advised CBRE Investment Management on the transaction, which combines CBRE's portfolio management and execution capabilities with Tenet's specialized sale-leaseback and capital sourcing expertise.
Summary
CBRE Investment Management, the $155 billion global investment arm of CBRE Group, announced the acquisition of Tenet Equity's net-lease platform for $1.6 billion, marking a significant expansion into the net-lease sector. Tenet Equity, a sale-leaseback specialist and capital provider built by Cerberus Capital Management over four years, will continue operating as a partner alongside CBRE IM under the combined platform structure.
The acquired portfolio comprises 208 commercial real estate assets spanning 39 states with a total footprint of 12 million square feet. The holdings are fully leased to middle-market industrial tenants under a net-lease structure—a model where tenants pay lower base rent but assume responsibility for operating expenses including property taxes, insurance, and maintenance. This configuration generates reliable, long-duration cash flows with average lease terms of approximately 17 years and minimal required capital expenditures from the landlord.
CBRE IM appointed Akash Shivashankara, senior portfolio manager, to lead the combined net-lease platform's management and development. Adam Gallistel, co-CEO and chief investment officer of CBRE Investment Management, highlighted the strategic rationale in a statement, noting that net-lease assets function as an inflation hedge given their extended lease terms and tenant-funded expense structure. "We are excited to deliver compelling investment opportunities to our clients by pairing our portfolio management and execution capabilities—together with the net-lease resources of CBRE Group—with Tenet and its proven track record of sourcing and managing mission-critical real estate," Gallistel said.
The transaction, advised by Truist Securities, integrates CBRE's institutional portfolio management infrastructure and CBRE Group's broader commercial real estate platform with Tenet's specialized expertise in source origination, underwriting, and asset management within the net-lease space. The combination positions CBRE IM to scale its net-lease strategy while leveraging Tenet's established sourcing relationships and operational track record in the middle-market industrial segment.
The acquired portfolio comprises 208 commercial real estate assets spanning 39 states with a total footprint of 12 million square feet. The holdings are fully leased to middle-market industrial tenants under a net-lease structure—a model where tenants pay lower base rent but assume responsibility for operating expenses including property taxes, insurance, and maintenance. This configuration generates reliable, long-duration cash flows with average lease terms of approximately 17 years and minimal required capital expenditures from the landlord.
CBRE IM appointed Akash Shivashankara, senior portfolio manager, to lead the combined net-lease platform's management and development. Adam Gallistel, co-CEO and chief investment officer of CBRE Investment Management, highlighted the strategic rationale in a statement, noting that net-lease assets function as an inflation hedge given their extended lease terms and tenant-funded expense structure. "We are excited to deliver compelling investment opportunities to our clients by pairing our portfolio management and execution capabilities—together with the net-lease resources of CBRE Group—with Tenet and its proven track record of sourcing and managing mission-critical real estate," Gallistel said.
The transaction, advised by Truist Securities, integrates CBRE's institutional portfolio management infrastructure and CBRE Group's broader commercial real estate platform with Tenet's specialized expertise in source origination, underwriting, and asset management within the net-lease space. The combination positions CBRE IM to scale its net-lease strategy while leveraging Tenet's established sourcing relationships and operational track record in the middle-market industrial segment.
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