Northstar Commercial Partners and ALTO Real Estate Funds Announce Major National Acquisition, Purchase 24-Property Portfolio for $224 Million

DENVER, Oct. 8, 2015 /PRNewswire/ -- Today, Northstar Commercial Partners and ALTO Real Estate Funds announced the successful acquisition of an attractive 24-property national U.S. portfolio, with a final purchase price of $224 million.

The diversified, value-add portfolio spans coast to coast, with various locations in 12 States. Thirteen (13) of the properties are industrial warehouse & manufacturing facilities, eight (8) are office buildings, and three (3) are retail assets – totaling 5,918,835 square feet on 486 acres. Twenty-two (22) properties have officially closed, with the last two in final stages of acquisition.

Several large, corporate brands currently occupy space as tenants, including well-known entities such as: Time Warner Cable - the second largest cable company in the U.S, Bechtel Corporation - the largest construction and civil engineering company in the United States, ATSG - one of the largest distribution holding companies worldwide, Dollar Tree - a chain of discount variety stores operates 5,000 stores throughout the 48 contiguous U.S. states and Canada, and Progressive Corporation - one of the largest providers of car insurance in the United States.

For over 16 years, Northstar Commercial Partners has specialized in buying vacant or highly distressed assets and placing them back into full productivity, in order to create jobs and opportunities for Americans throughout the Country.

"This deal is the most significant acquisition in Northstar's company history, bringing along with it our largest opportunity to date to create a positive impact for businesses and local communities nationwide," Brian Watson, Northstar's Founder & CEO, said. "It is very rare in this economic environment to acquire an off-market deal of this magnitude, diversity, and low occupancy rate, in order to drive very attractive opportunistic level returns."

Alto Real Estate Funds, is a series of closed end equity funds specializing in the acquisition of income-producing real estate assets located in the U.S. ALTO recently completed fundraising for its second fund, ALTO Fund II, for a total of $138 million from institutional and private investors. ALTO to date has invested in 50 properties, with a value of approx. $800 million representing a total area of 10 million square feet and 11 successful Exits. Due to the increase of the Fund's activity, ALTO is in the process of setting-up an office in Dallas in addition to their office in New York.

Mody Kidon, Chairman and co-founder of ALTO said: "We are very excited to acquire a portfolio of this magnitude. We received a great discount on this portfolio as we acquired 24 assets in one transaction as opposed to acquiring each asset individually. Therefore, the profit potential of this deal is extremely high".

Yaniv Melamud, CEO and co-founder of ALTO added: "Our investors will enjoy a portfolio that benefits from a good mix of geographic and sector diversification. We anticipate that we will be able to sell 40% of the portfolio within a short period of time and with a significant profit. The remaining assets can be sold after we increase the occupancy rate."

Twenty-one (21) of the facilities included in the 24-property acquisition are located in towns or areas with high unemployment, often times well above national and state averages.

Watson, who personally invested nearly two years into acquiring this off-market portfolio, explained: "The fact that the vast majority of these properties are found in places where people need work, and are looking for greater opportunity, makes us at Northstar all the more eager to be involved."

Northstar and ALTO plan to work diligently to increase the overall occupancy rate of the portfolio, which is currently ±70% attracting new businesses to these communities, translating directly into jobs and other valuable local resources.

"At Northstar we've always sought to set ourselves apart in the commercial real estate space in a variety of ways," Watson commented. "Not only do we focus on a unique niche within the industry by buying vacant or highly distressed commercial real estate assets at 50% or less of their replacement cost values, this in turn creates an enormous amount of renewed productivity for business and community alike. We've been able to inherently connect our profession with our passion of empowering people, by creating true opportunity for them."

"The future is always bright when your business is a platform to meet the needs of others, which in this case, is exceptional real estate solutions that create jobs and opportunity in the process. This most recent national acquisition will continue to solidify this identity at Northstar and guide us all moving forward," Watson concluded.

To learn more about Northstar and its Founder, please visit: www.northstarcp.com and www.brianwatson.us

To learn more about ALTO, please visit: www.alto-investments.com

Kyle Forti  
[email protected]  
719-377-0646  

Photo - http://photos.prnewswire.com/prnh/20151007/275122 

SOURCE Northstar Commercial Partners

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