Broadstone Net Lease (“BNL”) is an internally-managed real estate investment trust (“REIT”) focused on single-tenant commercial real estate properties in the United States.
Broadstone Net Lease is an internally-managed REIT that acquires, owns and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. As of September 30, 2021, BNL’s diversified portfolio consisted of 695 properties in 42 U.S. states and one property in Canada across the industrial, healthcare, restaurant, retail and office property types.
Stone Point originally invested in BNL’s investment manager, Broadstone Real Estate (“BRE”), which served as the investment manager for BNL and Broadtree Residential (“BTR”), a private real estate investment vehicle that invests in multifamily properties in multiple U.S. markets. In 2020, through a series of transactions involving the acquisition of the manager, BNL and its board of directors internalized the external management functions performed for BNL by Broadstone Real Estate and its affiliates, resulting in Stone Point’s ownership of BNL’s REIT shares.
Stone Point sourced several property investments for Broadstone Net Lease. Stone Point has also sourced and helped evaluate a number of potential acquisition opportunities.
BUSINESS & PRODUCT DEVELOPMENT
During its ownership of the investment manager, Stone Point helped BRE evaluate strategic opportunities, including expanding the Broadtree Residential vehicle into multifamily investments and launching new investment vehicles. Stone Point also helped assess BRE’s decision to sell its single-family homes portfolio and outsource property management for its residential properties. Additionally, through the internalization of the manager, BNL will benefit from a simplified structure, immediate cost savings related to fees associated with BRE, and further alignment of the management team within BNL.
CAPITAL RAISING & STRUCTURING
Stone Point has assisted BRE in raising additional equity for its investment vehicles through introducing the company to wealth advisory firms and other distribution partners within our network. Additionally, Stone Point helped BRE raise third-party debt for the first time at the manager and helped increase its lender group in its investment vehicle.
OPERATIONAL ASSISTANCE & GOVERNANCE
Stone Point worked with BRE’s management to put in place an equity participation plan for a broad set of employees to improve alignment.
Investments highlighted or discussed in this selection have been selected to illustrate SPC’s investment approach and/or market outlook and are not intended to be an indicator of past or future performance. Each investment discussed in this selection has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The investments discussed herein do not represent an entire portfolio and in the aggregate may only represent a small percentage of holdings. Nothing in this presentation shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced herein.