Experienced investment firms respond to changes in the commercial real estate climate, shielding their investors from the effects of a changing business landscape.
But reacting to changes isn’t always enough. So, Sentinel Net Lease does more: We anticipate changes, positioning our investors to capitalize on the unique opportunities created by changes in the market.
By proactively tracking the shifting economic and demographic trends that often drive changes in commercial real estate, we can find opportunities that have the potential for higher yields for our investors before other firms jump on board.
We also monitor rapid changes in technology, income disparity, and consumer preferences — changes that can serve as a barometer as we acquire income-producing commercial real estate properties for our portfolio.
In short, we do all the heavy lifting for our investors. On the front end, we source unique properties and compile valuable investment highlights — all through a seamless process designed to generate the best returns for you. After the acquisition, our best-in-class team handles all asset and property management functions, accounting, and tax preparation.
The investor’s only job is to review the information that we have compiled and decide if our investment opportunities fit their investment objectives.
We supply comprehensive information and are available to answer any questions an investor may have. As our Chief Investment Officer, Dennis Cisterna explained “One of our primary objectives is to educate our investors on a consistent basis and in a variety of mediums to provide maximum accessibility. Our commitment is to answer every question, no matter how small, because if it is important to our investors, it is important to us.”
How Do We Do It? By Utilizing the Experience and Expertise of Our Executive Team
Today’s institutional-quality, data-driven investment analyses can explore the nuances of the commercial real estate marketplace like never before. But the value of all this data depends a lot on how it’s interpreted. That’s where Sentinel’s leadership shines.
Together, our co-founders have almost half a century of boots-on-the-ground operational and asset management experience in commercial real estate delivering strong, risk-adjusted returns.
Co-founder and Chief Executive Officer Fred Lewis
Co-founder and CEO Fred Lewis guides and oversees Sentinel Net Lease’s mission, focusing on building capital relationships and the investing platform.
Before co-founding Sentinel in 2019, Fred already had more than two decades of experience as a leader in real estate development, having founded the Dominion Group in 2002. The Dominion Group includes firms for property management, insurance, lending, and real estate development. It has acquired or financed more than 6,000 residential and commercial real estate assets with a total value of over $1.2 billion.
Fred also founded RMN Investment Holdings, Hill Crest Investments, and the Real Estate Roundtable (RIR), and serves as a director on the Bank Board of Capital Bank of Maryland and the chair of the bank’s Board Loan and Finance Committees.
Co-founder and Chief Investment Officer Dennis Cisterna
Co-founder and CIO Dennis Cisterna guides Sentinel Net Lease’s investment strategy and growth. In his real estate career, which spans more than two decades, Dennis has completed more than $3.7 billion worth of real estate transactions across the U.S. and Europe. He served as the CEO of Investability Solutions, managing director of FirstKey Lending, founded Guardian Residential, and co-founded Lafayette Communities.
Dennis has also held key roles at firms such as Johnson Capital, Lennar, and Toll Brothers and has served on the National Rental Home Council, the National Association of Home Builders, the Commercial Real Estate Development Association, and the International Council of Shopping Centers.
As a speaker at conferences across the nation, Dennis has shared his investment insights with tens of thousands of investors. He has contributed to U.S. News & World Report, previously hosted The Investability Podcast, and is a licensed real estate broker in California.
Other Key Sentinel Leaders
Andrew Broeren, Sentinel Net Lease’s COO, oversees transaction structuring and execution and day-to-day operations of the platform, along with communications with investors. During Andrew’s extensive experience at HSBC Bank in London, he structured billions of pounds in corporate debt as head of structured finance for Southern Europe and has also served as an associate director of the Standard and Poor’s Rating Agency.
Daniel Hillman, the firm’s senior vice president of research, organizes market and project level due diligence for all Sentinel investment opportunities, using a proprietary process to analyze macroeconomic, local market, and policy data.
Jamie Ricalde serves as a Senior Associate of Asset Management and Acquisitions for Sentinel. She is responsible for a variety of activities in support of new investments, from acquisition through disposition, as well as providing support on critical portfolio & firm-level initiatives.
Sentinel Net Lease’s Three Areas of Focus:
Our team’s collective experience, combined with our extensive market analysis, directs us to mission-critical, tech-focused properties through net lease investment strategies. These properties fall within three areas of focus:
Core credit-rated
These commercial properties already have profitable, long-term, credit-rated tenants with net leases scheduled to last 6 to 10 more years. We anticipate a cash-on-cash return in the high single digits/low double digits for up to a decade with the potential for higher earnings later, after the disposition of the property.
Opportunistic credit-related
Stable and profitable tenants in these properties typically have six or fewer years remaining on their leases. Since disposition of the lease will take place sooner, this classification of properties has more potential for growth in the shorter term.
Value-added core
These assets have tenants nearing the end of their net leases, offering an opportunity for higher returns in the near future. Often, these assets will get capital improvements to enhance their ability to command higher rents and thus, produce greater yields upon disposition. By their nature, these properties have more risk potential, but our selection process mitigates this potential as much as possible.
Acquisition Criteria for Sentinel Net Lease Properties
Not all investment properties meet Sentinel Net Lease’s acquisition criteria, either because of the existing tenant, the structure of the existing lease, the location, or because the property isn’t positioned to continue earning income.
The properties we select for our investment platform typically meet these standards:
For Stabilized Properties
- Property type: We focus on office, auto, retail, and industrial properties
- Geography: We look for properties in the nation’s top 100 metro areas, particularly in the Midwest and Southeast
- Acquisition price: Between $10 million and $40 million
- Return profile: In-place cap rates of 6.5% and higher
- Lease elements: Credit-rated tenants; annual rent increases; NN and NNN preferred
- Investment period: 4 to 10 years
For Value-add Properties
- Property type: We focus on office, auto, retail, and industrial properties
- Geography: We target infill and high-quality suburban areas within the top 25 metro regions
- Acquisition price: Between $10 million and $30 million
- Return profile: 25% or higher internal rate of return
- Lease elements: Credit-rated tenants; annual rent increases; NN and NNN preferred
- Investment period: 2 to 4 years
Market Selection: Putting the Pieces Together
Earning dependable monthly income in the commercial real estate market requires:
- Analytical tools to study economic, demographic, and housing market trends block by block and neighborhood by neighborhood
- A selection process that mitigates risk and aims for the best possibilities for future growth
- A high level of quality asset and property management, ensuring the owner serves as a good steward of the property and maximizes long-term value.
- A leadership team that combines decades of experience, billions of dollars in successful real estate deals, and a foundation of steadfast ethics and fiduciary responsibility
Sentinel Net Lease combines all of these elements, allowing us to acquire and manage quality income-producing properties for our platform.
While some of our analytical tools may be new, our end goal is always the same: investing in markets with strong foundations for future growth to earn dependable passive income for our investors through rental income, appreciation, and value creation.
Check out our portfolio of Sentinel Lease Properties and our Open Investment Opportunities to learn more about where we’re growing income for our investors. Or follow us on Facebook to see our acquisition process in action.
