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Falcon Completes Purchase of $270,000,000 Industrial Portfolio

Acting behalf of one of its investors, Falcon Real Estate has recently completed the purchase of a portfolio of 22 warehouse and distribution buildings in eleven cities across the United States. The purchase price was $270,000,000. The portfolio contains a total net rentable area of 5,450,000 square feet and is well diversified both geographically and by tenant profile. The seller was Teachers Insurance and Annuity Association of America for the benefit of its separate real estate account. Financing for the acquisition was provided by Credit Suisse Column Financial.
The portfolio includes multiple holdings in the greater Cincinnati and Philadelphia metropolitan areas, in Atlanta and Memphis, as well as properties in Salt Lake City, Phoenix, San Diego, Chicago, Dallas, El Paso and Oakland. The buildings in the portfolio were 91% leased at closing to such well known tenants as Federal Express, DuPont, The Gap, UPS, Komatsu and Mitsui.

This transaction was handled by a team of acquisition and asset management professionals at Falcon Real Estate, headed by Laurence E. Dooley, Director. Mr. Dooley commented that we had recommended this purchase to our client since we felt that it represented an extraordinary opportunity to obtain a major high-quality position in the industrial segment of the U.S. real estate market, which we believe is relatively attractive today. Falcon Real Estate will provide asset management for these properties.


Junly 2007