Loci Capital Leads Preferred Equity Investments in 21 Asset Portfolio
Funds controlled by Loci Fund II GP, LLC, an affiliate of Loci Capital Group, LLC ("Loci"), a leading private real estate fund manager, completed a preferred equity investment for the acquisition & recapitalization of a 21-asset retail and commercial net lease portfolio. The portfolio will be managed by Generation Income Properties, Inc. (NASDAQ:GIPR).
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"This investment is a great example of the type of access we provide our investors in what is a difficult market to get deals closed," commented Michael Phillips, CEO and co-founder of Loci Capital. "The cost basis, underlying cash flow of the portfolio, and strength of the tenant base combine to create a wide margin of safety for our investors. Combined with world-class sponsorship, we think this is a great first deal for our Fund II investors."
The investment was made concurrent with GIPR's acquisition of a portfolio of 13 net lease assets from Modiv Industrial, Inc. (NYSE:MDV), an internally managed net lease industrial manufacturing REIT. The high-quality portfolio is complementary to GIPR's portfolio and investment strategy. The transaction nearly doubles the size of GIPR's portfolio, is immediately accretive to cash flow for the Company and increases their geographic footprint to 13 states across the US.
"We've been extremely impressed with Generation Income Properties throughout the investment process," said Garrett Francis, Managing Principal and Head of Capital Markets at Loci Capital. "The team has been incredibly transparent and easy to work with, providing us with timely access to information needed to complete an in-depth underwriting of the portfolio. We hope that this first investment will mark the beginning of a long-term relationship with GIPR."
"We are very grateful for the relationship formed with Loci and the opportunity to work together on this portfolio. Our similar cultures and attention to detail made for a seamless transaction and we're pleased to be working with Loci as we grow our Company," commented David Sobelman, CEO of GIPR.
Loci pursues a diversified strategy consistent with the track record of its senior leadership team focused on making investments in the Southeastern U.S. The firm invests across asset classes and throughout the capital stack, targeting opportunistic returns consistent with those demonstrated by the firm's 13-year attributable track record.
About Loci Capital
Loci Capital is a leading middle market private real estate investment firm based in Florida and focused on investments throughout the Southeastern United States. Loci's senior leadership is experienced in the development, redevelopment, repositioning, and conversion of assets across all real estate sectors. Since its inception in 2019, the firm has invested more than US $240 million of equity in over $1.0bn worth of real estate on behalf of its investors throughout its target markets, including in the multifamily, hospitality, office, vacation rental, student housing and medical office sectors. For additional information, visit locicapital.com.
About Generation Income Properties
Generation Income Properties, Inc., located in Tampa, Florida, is an internally managed real estate investment trust focused on acquiring and managing income-producing retail, office, and industrial properties net leased to high-quality tenants in densely populated submarkets throughout the United States. Additional information about Generation Income Properties, Inc. can be found at the Company's corporate website: www.gipreit.com.
About Modiv Industrial
Modiv Industrial, Inc. is an internally managed REIT that acquires, owns, and manages a portfolio of single-tenant net-lease real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation's supply chains. Driven by an investor-first focus, the Modiv name reflects its commitment to providing investors with Monthly Dividends. As of August 14, 2023, Modiv had a $614 million real estate portfolio (based on estimated fair value) comprised of 4.7 million square feet of aggregate leasable area. For more information, please visit www.modiv.com.
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