Expected to further enhance diversification and cash-flow stability for the Bailard Real Estate Fund
The Bailard Real Estate Fund acquired a 100% leased Class-A office property at 250 Holger Way in San Jose, CA ("District 237"), and a 100% NNN-leased, Stop & Shop anchored neighborhood retail center in Mansfield, MA, in September and October, respectively.
"Throughout this unprecedented year, Bailard has been particularly vigilant to guard its liquidity and protect its strong balance sheet," said Preston Sargent, President and CEO of the Bailard Real Estate Fund. "After closely monitoring markets and macro-economic conditions since late March during these extraordinarily uncertain times, we decided to prudently utilize some of the Bailard Real Estate Fund’s cash to purchase two attractive assets that the team feels are secure and low-risk investments."
On September 25, the Fund closed on the acquisition of District 237 at a gross purchase price of $38.25 million. The asset is a two-story, Class A office building totaling 76,410 square feet and covering 4.1 acres in San Jose, CA. Strategically positioned on a prominent Highway 237 frontage road, the property features building-top signage with excellent visibility from the highway, a major east/west arterial through Silicon Valley that, prior to the pandemic, averaged 268,000 cars daily.
James Pinkerton, SVP of Acquisitions & Portfolio Management at Bailard, said "the purchase of this Class A office building represented an opportunity to acquire a well-located and 100%-leased property. We closed the transaction, at a ~25% discount to replacement cost, that will further diversify our Fund’s portfolio."
On October 20, the Bailard Fund acquired the Mansfield Stop & Shop at a gross purchase price of $25.0 million. The property is a one-story, grocery-anchored neighborhood center and fueling station situated on approximately 9 acres. Stop & Shop currently leases 100% of the building through March 31, 2033 with a series of ten-year options extending out to 2093.
"This was an off-market opportunity, which meant we were able to negotiate directly and exclusively with the seller," said Tess Gruenstein, a Bailard SVP of Acquisitions & Portfolio Management. "And, the proximity to the two large population hubs of Boston, MA and Providence, RI and easy access to two major interstates (95 and 495) creates a location attractive for both commuters as well as industrial and logistics operations."
About the Bailard Real Estate Fund
The Fund is an actively-managed U.S.-focused open-end, core equity real estate vehicle with a strategy to maintain and grow a portfolio of high-quality assets diversified across property types, major metro areas, and investment life cycles. As of September 30, the Fund’s Gross Asset Value was $1.1 billion, invested in 28 properties across 17 U.S. markets. An investor in the Bailard Real Estate Fund must be an "accredited investor" as defined in Regulation D and provide documentation verifying such status as requested by the Fund.
About Bailard, Inc.
With 50 years of experience, Bailard proudly serves as a trusted partner focused on achieving long-term results aligned with client goals. An independent firm since its founding in 1969, Bailard stands committed to its values and, most importantly, its clients. With $4.0 billion AUM as of September 30, 2020, Bailard’s high-touch client service and proven track record are grounded in the firm’s core values of accountability, compassion, courage, excellence, fairness, and independence.
Bailard, Inc. ("Bailard") is the investment and operating manager of the Bailard Real Estate Investment Trust, Inc. (the "Bailard Real Estate Fund" or the "Fund"); Bailard receives annual fees from the Fund, which are based on the Net Asset Value. The Fund invests primarily in real estate and, as a result, an investment in the Fund entails significant risks that are customarily associated with the development and ownership of income-producing real estate, including illiquidity, changes in supply and demand, and inexact valuation. The Fund’s shares fluctuate in value and may be illiquid due to a lack of redemption, the lack of a secondary market and restrictions on transfer. Fees and expenses may offset the return on the investment. The Fund may be leveraged. While projections utilized for acquisitions are based on assumptions that Bailard believes are reasonable under the circumstances, they are subject to uncertainties, changes (e.g., changes in public health, economic, operational, political, legal, tax, and other circumstances), and other risks including, but not limited to, future operating results including rents, occupancy, and other property cash flows, and other expenses. Investors may lose all or a substantial portion of their investment. For a more thorough discussion of the fees and the risks involved in making an investment in the Fund, please refer to its Offering Memorandum. Past performance is no indication of future results. All investments have the risk of loss.
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