OREC-Boulder ORIX Net Lease LLC Acquires 262,000 SF Building in Allen, TX, Near Dallas

CHICAGO, IL (July 10, 2008) – A joint venture of Chicago-based ORIX Real Estate Capital, Inc. and Boulder Net Lease Funds, LLC, based in Chicago’s north suburban Northbrook, Illinois, has acquired a 261,700-square-foot, single-tenant industrial building in Allen, Texas, said David R. Brown, president and chief executive officer of ORIX Real Estate Capital, and Randy Blankstein, president of Boulder Net Lease Funds, LLC. The seller was iStar Financial, based in New York City. The purchase price was not disclosed. 

Situated on 13.65 acres at 105 West Bethany Drive, the building was completed in 1997 and is fully leased to Sanmina Texas, L.P., an electronic manufacturing service (EMS) provider of end-to-end solutions in the design, engineering, manufacturing and global distribution of communications systems, optical assemblies and rack assemblies.

Situated in a fast-expanding high-tech corridor within Dallas/Fort Worth (the “Metroplex”), the property is a quarter mile east of the Central Expressway (US 75) and easily accessible to D/FW International Airport and all of the metropolitan area.  “Occupancy in the Allen submarket is strong, with a rate of 93 percent,” said Eric Wollan, senior vice president-acquisitions of ORIX Real Estate Capital, “and the area is one of the top industrial locations in the Metroplex. Absorption is good, and vacancy rates are trending down.  We saw this as an excellent investment opportunity.”

Sanmina was the building’s original tenant. The property features 32-foot clear heights, 18 dockdoors and 512 parking spaces.

“The building has been very well maintained by the owners and the tenant,” noted Blankstein, “and it is surrounded by some of the world’s leading high-tech companies, such as TI, Nortel, Verizon, AT&T, Fujitsu and HP. We therefore anticipate steadily rising property values in the area.”

Boulder ORIX Net Lease, which invests in properties on an all-cash basis, targets transactions ranging in value from $6 million to $30 million. The venture seeks well-located properties, each occupied by a single tenant preferably with less than five years remaining on its lease. Primary and secondary markets are of equal interest to the venture.

Evan Stone, Cary Krier and Stephen Link of the Dallas office of Jones Lang LaSalle Capital Markets Group represented iStar in the sale transaction.

Chicago-based ORIX Real Estate Capital, Inc. is an active provider of debt and equity capital for real estate transactions and developments throughout the United States. The company is a subsidiary of Dallas-based ORIX USA, whose parent company is ORIX Corporation, a Tokyo-based integrated financial services company with more than $80 billion in assets and operations in 23 countries.  For more information about ORIX Real Estate Capital’s capabilities, to view recent transactions, and to obtain contact information, visit www.orix.com. 

Boulder Net Lease Funds, LLC is a sponsor of performance-based, private equity real estate funds focused exclusively on the net leased sector. Boulder Net Lease Funds LLC’s principals have participated in the acquisition, financing and disposition of more than $1 billion of net leased real estate transactions through several real estate cycles. Additional information on the company can be found at www.boulderfunds.com.