ARTEMIS REAL ESTATE PARTNERS’ EMERGING MANAGER PROGRAM ANNOUNCES FIRST ACQUISITION IN SAN BERNARDINO, CALIFORNIA
Artemis Real Estate Partners announced that it acquired through a joint venture with CT Realty Investors a 225,000 square foot, 100% leased industrial building in San Bernardino, California. This transaction was made on behalf of New York Common State Retirement Fund’s (NYSCRF) $300 million real estate emerging manager program, which seeks to invest with best- in-class operating partners who have market and product expertise. CT Realty Investors has been approved by NYSCRF as an industrial operating partner in the emerging manager program focused on the Southern California region.
The industrial property was purchased in an all cash acquisition as a sale leaseback transaction from a major medical center for a five-year term. CT Realty Investors has retained the right to terminate the lease early to facilitate a 400,000 square foot build-to-suit opportunity on the 18.99 acre site. The property will generate an attractive current return during the marketing phase along with an enhanced core return over the expected investment term.
The site is located at 1333 South Tippecanoe Avenue, San Bernardino, California, less than a mile from the I-10 and the I-215. James Watson, CT’s Chief Executive Officer, said, “This is the first transaction in the emerging manager program with Artemis Real Estate Partners and will be the perfect start for the venture as an income generating property with the future upside potential of a 400,000 square foot build-to-suit. The property is located in one of the most desirable locations in the Inland Empire and is consistent with CT Realty Investors’ strategy to aggregate a Southern California portfolio of high- quality industrial assets.” Susan Barlow, CT’s Chief Strategy Officer, added, “This program is transformational to our firm in that it has enabled us access to enhanced core institutional capital in joint venture format, allowing us to execute on attractive opportunities in our target market.”
“As a vertically integrated Southern California industrial company with a strong presence in the market, CT Realty Investors epitomizes the local real estate connection that Artemis is seeking through the emerging manager program,” said Jim Smith, Artemis Real Estate Partners’ Portfolio Manager for the Emerging Manager Program.