Sentinel Net Lease Announces Launch of Sentinel Opportunity Fund I
Sentinel Opportunity Fund I will target strategic acquisitions in key suburban markets across the United States, focusing on properties with long-term leases to quality credit tenants with strong financial profiles.
LAS VEGAS, April 24, 2024 (Newswire.com) - Sentinel Net Lease (“Sentinel“ or the “Company”), a leading national real estate investment firm, is pleased to announce the launch of Sentinel Opportunity Fund I, a $100 million closed-end fund focused on the acquisition of stabilized office, retail, and industrial properties.
The surge in interest rates over the past two years has put a variety of pressures on the commercial real estate sector and with the Fed’s recent signaling of rates being “higher for longer,” Sentinel plans to capitalize on acquiring stabilized properties with long-term leases at generationally attractive pricing.
“Elevated interest rates have expanded capitalization rates and lowered property values to the point where we believe we can selectively acquire high-quality retail, industrial, and particularly single-tenant office assets that produce cash on cash returns that far exceed other asset types. We struggle to see the upside in a lot of other strategies in the market, especially those in the residential sector, which require too much speculation as they require a substantial decline in interest rates coupled with massive rent increases to generate any significant potential returns,” said Dennis Cisterna, Chief Investment Officer at Sentinel. “We are focused on investments that make sense in today’s environment and we believe our disciplined investment approach will position the fund for long-term success.”
Sentinel Opportunity Fund I will target strategic acquisitions in key suburban markets across the United States, focusing on properties with long-term leases to quality credit tenants with strong financial profiles. The fund’s investment strategy will prioritize assets that demonstrate durable cashflow and attractive risk-adjusted returns while still utilizing accretive debt in a high-interest rate environment.
Although launched just a few weeks ago, the Fund has commitments exceeding $20MM and four properties under contract totaling over $40MM. With the use of conservative leverage, the Fund is targeting the acquisition of 15 to 20 assets totaling $250 million.
“The launch of Sentinel Opportunity Fund I is the right strategy at the right time as our company has continued to expand our capabilities and market pricing has softened. This is especially true for office properties as many investors have fled the sector entirely even though highly utilized, Class A properties are available at significant discounts to historical pricing,” added Fred Lewis, Chief Executive Officer at Sentinel Net Lease. “We are bullish on the long-term stabilization of the sector and are excited to offer investors access to a diversified portfolio of high-quality commercial real estate assets.”
Sentinel is led by a seasoned team of commercial real estate professionals with decades of experience in sourcing, underwriting, and managing commercial real estate investments. The firm’s rigorous due diligence and hands-on approach to asset management will be instrumental in driving value creation and maximizing returns for investors.
For more information about Sentinel Opportunity Fund I, please visit www.sentineloppfund.com.
Source: Sentinel Net Lease
