July 13, 2022 9:00 AM
Newmark announces the for-sale opportunity of the ERP industrial collection, a 33-asset net leased industrial portfolio located in the Permian Basin in Midland, Texas, one of the largest oil fields in the world.
Newmark’s Net Lease Capital Markets group comprising of Vice Chairman Matt Berres, Director Samer Khalil and Associate Karick Brown in partnership with Vice Chairman, Divisional Head of International Capital Markets Alex Foshay and International Capital Markets Analyst Victoria Radman are representing Energy Related Properties (“ERP”) as the exclusive sales agents for the collection in cooperation with Newmark Executive Managing Director Lispah Hogan, CCIM, MCR.
The portfolio comprises 33 single- and multi-tenant net leased assets totaling 662,714 square feet on 160.7 acres. Currently 91% leased, the portfolio offers a diversified and staggered rent roll and has maintained an average occupancy of more than 90% over the past five years, despite fluctuations in oil prices. Out-of-area investors have the option of retaining and benefiting from Midland-based Energy Related Properties’ highly experienced portfolio management and unique knowledge of the Permian Basin market.
The Permian Basin is the highest producing oil field in the world and one of the largest. The region stretches from Western Texas into Southeastern New Mexico. The strategically located tier 1 assets were selected for their best-in-class locations in immediate proximity to Midland’s major highways such as Interstate 20 and Texas State Highways 80, 158, 191 & FM 1788. The portfolio assets are also proximate to the Midland International Airport, providing ease of access to both tenants and ownership.
“This is an extremely rare opportunity to acquire a masterfully curated portfolio of the best assets in the Permian Basin and a significant market share position,” said Berres. “Global oil markets are exceptionally tight given current geopolitical tensions and possible disruption to supplies.
In line with the wider increased energy production of the Permian Basin, this portfolio stands to benefit significantly from these market dynamics.”
Foshay added, “Beyond the physical real estate precisely meeting the market’s needs and the locations of this collection of assets, the portfolio’s tenancy profile also offers immediate access to substantial growth and a highly efficient inflationary hedge, a combination which is increasingly difficult to find in today’s market. The mix of high-quality upstream tenants at rents 20% below market and the attractive staggered lease profile, against the backdrop of outperforming oil markets, make the portfolio one of the few commercial real estate offerings with genuine significant growth in the short to medium term.”
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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