{"id":1004129109,"date":"2015-10-12T06:36:50","date_gmt":"2015-10-12T14:36:50","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004129109"},"modified":"2020-04-14T23:47:19","modified_gmt":"2020-04-15T07:47:19","slug":"northstar-alto-splurge-on-a-diversified-portfolio","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/","title":{"rendered":"Northstar, ALTO Splurge on a Diversified Portfolio"},"content":{"rendered":"

By Scott Baltic, Contributing Editor<\/em><\/p>\n

Northstar Commercial Partners<\/a> and ALTO Real Estate Funds <\/a>have purchased a 5.9-million-square-foot, 24-property portfolio for $224 million, the two companies announced late last week. What the buyers describe as a \u201cdiversified, value-add portfolio\u201d includes properties in 12 states and consists of 13 industrial facilities, eight office buildings and three retail assets.<\/p>\n

\"Northstar<\/a>

Brian Watson, Northstar CEO; Mody Kidon, ALTO chairman; and Yaniv Melamud, ALTO CEO.<\/p><\/div>\n

The seller is Moshe Silagi of Silagi Development and Management, of Thousand Oaks, Calif., a Northstar spokesperson told Commercial Property Executive<\/em>. Closings have been held on all but two properties, office buildings in California and Georgia.<\/p>\n

\u201cThis deal is the most significant acquisition in Northstar\u2019s company history, bringing along with it our largest opportunity to date to create a positive impact for businesses and local communities nationwide,\u201d Brian Watson, Northstar’s founder & CEO, said in a prepared statement. \u201cIt 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.\u201d<\/p>\n

Watson reportedly invested nearly two years into the transaction.<\/p>\n

Twenty-one of the properties are in towns or areas with high unemployment, often well above national and state averages.<\/p>\n

\u201cWe don\u2019t just focus on depressed economies,\u201d Watson told CPE<\/em>. \u201cOur focus is to acquire vacant or highly distressed commercial real estate at 50 percent or less of its replacement cost value. By buying buildings with \u2018good bones,\u2019 in good markets, we are able to reposition the assets to create strong value. Some of the assets in the SDM portfolio are in challenging markets, and we will look forward to creating value for those and the others as well. Some of the assets have strong tenants, and we look forward to securing more.\u201d<\/p>\n

Those strong tenants include Time Warner Cable; Bechtel Corp.; ATSG, one of the world\u2019s largest distribution holding companies; Dollar Tree; and Progressive Corp., the car insurer.<\/p>\n

\u201cWe 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,\u201d Mody Kidon, chairman & co-founder of ALTO, said in the statement.<\/p>\n

The portfolio \u201cbenefits from a good mix of geographic and sector diversification,\u201d added Yaniv Melamud, CEO & co-founder of ALTO. \u201cWe anticipate that we will be able to sell 40 percent 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,\u201d which currently averages about 70 percent.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Denver-based privately held investment company and the New York-based equity funds specializing in the acquisition of income-producing assets have made history with a new purchase across 12 states.<\/p>\n","protected":false},"author":882,"featured_media":1004129127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21748,21783,21742,21747,21749],"tags":[],"class_list":["post-1004129109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial","category-investment","category-latest","category-office","category-retail"],"acf":[],"yoast_head":"\nNorthstar, ALTO Splurge on a Diversified Portfolio - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Northstar, ALTO Splurge on a Diversified Portfolio\" \/>\n<meta property=\"og:description\" content=\"The Denver-based privately held investment company and the New York-based equity funds specializing in the acquisition of income-producing assets have made history with a new purchase across 12 states.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2015-10-12T14:36:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-15T07:47:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/ALTO.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/\",\"name\":\"Northstar, ALTO Splurge on a Diversified Portfolio - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/ALTO.jpg\",\"datePublished\":\"2015-10-12T14:36:50+00:00\",\"dateModified\":\"2020-04-15T07:47:19+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/northstar-alto-splurge-on-a-diversified-portfolio\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/ALTO.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/ALTO.jpg\",\"width\":800,\"height\":533,\"caption\":\"Brian Watson, Northstar CEO; 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