By James Hagedorn
Rochester-NY based Broadstone Net Lease is looking to cash in on the red hot sector with an IPO that could rake in as much as $600 million.
With net-lease investment in office, industrial and retail properties up 30 percent from last year to $20.9 billion in Q3 2019, according to CBRE, Broadstone is betting the public markets will draw in investors looking for strong risk-adjusted returns, as yields on more routine and standard fixed income opportunities fluctuate with the Fed’s indecision on whether to sharpen the axe on corporate and consumer debtors alike.
Founded in 2007, Broadstone is a publicly reporting, privately offered Real Estate Investment Trust (REIT) that acquires and holds freestanding, single-tenant, net-leased properties. It currently owns $4.4 billion in assets that include 662 net-leased properties in 42 states and Canada with 187 tenants and 171 brands.
The move to be publicly listed sees the company shift from its private placement investment model, which features over 3650 stockholders made up of institutional and accredited investors.
Last month, Broadstone completed an internalization of its management team by combining the management groups of Broadstone Net Lease, Inc. and Broadstone Real Estate LLC.
The move to combine the two helped to simplify the investment activity, business operations and improve overall transparency while also cutting the cost of operations associated with having a manager and operator structure.
That deal brought Broadstone real Estate’s shareholders a $300 million upfront payout made up of shares of BNL common stock and membership units of the operating company, with further earnouts of up to $75 million dependent on the success of the IPO.
Broadstone Net Lease, Inc. plans to complete the pricing of the IPO before December 31, 2020.
The offering will be real estateʼs biggest since WeWorkʼs aborted IPO this summer.