CBRE Investment Management acquires Tenet Equity for $1.6 billion

CBRE Investment Management has acquired Tenet Equity, a national net-lease investment platform, from Cerberus Capital Management for $1.6 billion. The acquisition was made on behalf of several of CBRE IM’s investment strategies.

The Tenet Equity portfolio consists of 208 assets totaling approximately 12 million square feet of commercial real estate across 39 U.S. states. The properties are fully leased to middle-market industrial tenants, featuring an average lease term of roughly 17 years. The platform specializes in triple-net lease financing and sale-leaseback transactions, allowing companies to monetize real estate while maintaining operations.

CBRE Investment Management will partner with Tenet Equity to manage the assets and expand the platform. Akash Shivashankara has been appointed as senior portfolio manager to lead this effort. Adam Gallistel, co-CEO and chief investment officer of CBRE Investment Management, stated that the net-lease sector serves as a hedge against inflation due to long lease terms and minimal capital expenditures.

Cerberus Capital Management established Tenet in 2021. For this transaction, Evercore served as the exclusive financial adviser to Cerberus, while Kirkland & Ellis provided legal counsel. Truist Securities advised CBRE Investment Management.