Carlyle to buy net lease asset portfolio from iStar for $3bn

Carlyle to buy net lease asset portfolio from iStar for $3bn

iStar Inc. has agreed to sell a portfolio of its owned and managed net lease assets to an affiliate of Carlyle’s Global Credit platform for $3.07 billion.

The portfolio consists of 18.3 million square feet of institutional quality office, entertainment, and industrial properties located throughout the country.

The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions.

“The sale of our net lease portfolio is the culmination of a highly successful investment strategy for iStar and the result of the outstanding efforts of our net lease team, led by Barclay Jones and Catherine Tenney.  We are pleased to sign an agreement that will recognize the value that we have built up over many years and that will enable the team to continue taking advantage of opportunities in the net lease space on behalf of Carlyle and its investors,” said Jay Sugarman, Chairman and Chief Executive Officer.

“For us, this sale continues the execution of our announced corporate strategy of simplifying our portfolio and focusing on the ground lease business, which we view as the next evolutionary wave in commercial real estate.”