September 15, 2022 08:05 ET | Source: Sentinel Net Lease
Marks the first full cycle event for the real estate investment company
BALTIMORE, Sept. 15, 2022 (GLOBE NEWSWIRE) — Sentinel Net Lease (“Sentinel”) today announced the investment firm’s first disposition, the sale of a Schnucks Fresh Foods in Loves Park, Illinois. The 142,357 square foot retail building was 100% leased and occupied by Schnucks Markets, Inc., one of the nation’s largest private grocers.
Sentinel Net Lease was founded by investment veterans Fred Lewis and Dennis Cisterna III with a primary strategy to invest in real estate occupied by tech-centric and essential services companies that can thrive in normal market conditions and operate successfully in recessionary environments.
This property was acquired less than two years ago at an attractive capitalization rate during the height of the pandemic. Sentinel’s original business plan was to repurpose and re-tenant the excess distribution space on the property and develop new street frontage retail on the oversized parking lot over the next several years.
“While we generally acquire assets with a longer hold period in mind, we received an unsolicited offer from an institutional buyer and were able to sell the property at a substantial profit in a shorter investment period without taking on any additional risk. While I am sad to not be able to execute our full vision for the property, we are thrilled to generate a tremendous return to our investors and complete our first full cycle investment,” said Cisterna, Sentinel’s Chief Investment Officer.
The Loves Park location is just one of several Schnucks properties owned by Sentinel throughout the Midwest. Lewis, Sentinel’s CEO, commented, “We are big believers in great companies, defensive industries, and stable markets throughout the Midwest region. Grocery was considered necessity-based retail and Schnucks Markets is a fantastic operator across several states, making this an ideal acquisition for our net leased portfolio. Our business plan did not call for a sale after just two years, however; the opportunity to dispose of the asset and provide outsized returns to our investors was a decision that management felt was in the best interest of our investors.”
About Sentinel Net Lease
Sentinel Net Lease is a real estate investment firm founded in 2019 that is focused on acquiring commercial real estate investments that either produce monthly cash-flow or possess significant profit potential through renovation and leasing. Our properties are expected to be resistant to certain market disruptions while offering potential out-sized returns for investors. Management targets opportunistic situations that may not be a fit for traditional institutional investors due to size or transaction complexity, utilizing the firm’s extensive experience to understand each property’s narrative to create real value for investors.
Sentinel’s approach combines institutional-quality, data-driven investment analysis with exceptional boots-on-the-ground operational experience and meticulous asset management to deliver strong, risk-adjusted yields. Sentinel Net Lease currently own 15 properties totaling over 1.5 million square feet with assets under management in excess of $240MM.
Visit sentinelnetlease.com for more information.
Sentinel Net Lease
Laura Nguyen – Director of Investor Relations & Marketing