CBRE Investment Management has acquired Tenet Equity and launched a new triple net lease investment strategy, adding a fully leased $1.6 billion real estate portfolio spanning 39 states and creating a platform for additional investment in sale-leaseback transactions.
Tenet’s portfolio includes 208 net lease assets totaling approximately 12 million square feet.
The portfolio has a weighted average remaining lease term of 16.7 years and is expected to generate long-duration, contractually growing rental income from a diversified group of tenants.
CBRE Investment Management is making the investment on behalf of several of its investment strategies.
Alongside the acquisition, CBRE IM is launching a dedicated strategy to invest further in net lease properties and support Tenet’s continued growth.
Akash Shivashankara, a senior portfolio manager at CBRE IM with more than 20 years of experience managing operating partnerships, will lead the strategy.
Tenet specializes in sale-leaseback financing for middle-market businesses.
In a typical sale-leaseback transaction, a company sells real estate used in its operations to an investor and simultaneously leases the property back under a long-term agreement.
That structure can allow companies to unlock capital tied up in real estate while continuing to operate from the same facilities.
CBRE IM said Tenet combines credit underwriting with fundamental real estate analysis to generate predictable rental income for investors while providing companies with an alternative source of capital for growth.
The firm sees a significant opportunity in the broader North American market.
CBRE Investment Management estimates that several trillion dollars of operational real estate remains owned directly on the balance sheets of middle-market companies, while institutions currently own only about 1% of the addressable market.
The acquisition pairs Tenet’s sourcing and asset-management platform with CBRE IM’s portfolio management capabilities and the broader real estate resources of CBRE Group.
CBRE Investment Management had $154.8 billion in assets under management as of June 30, 2026 and operates across 20 countries.
Truist Securities served as financial advisor to CBRE Investment Management.
KEY QUOTES:
“Net lease offers what few sectors can: durable, growing, inflation-protected income with long lease terms and low capital requirements.”
Adam Gallistel, Co-CEO and Chief Investment Officer of CBRE Investment Management
“With CBRE Investment Management’s deep operating expertise and global investor relationships behind us, Tenet is better positioned than ever to accelerate our growth and maintain our continued leadership in the net lease industry for years to come.”
Nicholas Eggert, CEO of Tenet Equity
