Vault Equity Partners’ (VEP) funds are today’s vehicles for connecting institutional and individual investors to the net lease retail sector without the volatility or operating inefficiencies of their larger public peers. VEP funds also offer shorter hold periods and greater liquidity than many of their private peers. VEP was built based on years of experience in operating and growing a net lease acquisition platform, keenly structured to optimize operational efficiencies, maximize capital resources and leverage a proprietary network of stakeholders that is second to none.
VEP Core Acquisitions are comprised primarily of STNL retail and medical assets leased to nationally recognized tenants. Our focus is REAL ESTATE FIRST. Acquisition criteria includes:
- Geography – Focused on the U.S. East Coast from New York to Florida, plus Texas. We will consider opportunistic acquisitions in other metropolitan areas with significant population density.
- Property Types – General retail assets, fuel & convenience stores, medical uses, restaurants, financial service uses and health/fitness facilities.
- Transaction Size – No minimum to $30 million maximum per deal (multi-property package purchases can be larger).
- Lease Term – Generally in excess of ten years but shorter lease terms are acceptable provided contract rents are below “market” rents, the store is performing profitably and there is a reasonable expectation of renewing or increasing rent upon re-leasing.
- Credit – Varied but focused on nationally recognized tenants who have a strong presence in each respective market. VEP acquisitions are real estate oriented and we consider intrinsic value and the ability to re-lease at higher rents as our primary criteria. Investment grade tenants are not required but of course are preferred.
Franchised Restaurant Sale Leasebacks
VEP’s deep relationships and transactional expertise in the franchised restaurant space make us an ideal partner for franchisees looking to monetize their real estate holdings. As consolidation in the franchised restaurant space continues its rapid pace, VEP is an eager partner to execute sale-leaseback transactions as part of leveraged buyouts between operators. VEP will synthesize purchase agreements, create leases, coordinate with lenders and close simultaneously on the real estate with the closing of the business transaction. VEP has the ability to acquire any number of assets in any geographic region of the United States. VEP’s experience includes closing over 40 franchised restaurant sale leaseback acquisitions since 2012.
VEP is committed to preserving the wealth of its investors by creating bondable net lease funds, enhanced with its expertise in the franchised restaurant space and the extraordinary tools available in today’s financial marketplace. As a result, VEP funds deliver cash-on-cash yields far superior to comparable REIT or bond investments. Further, the quality of VEP portfolios allow for vast exit optionality, providing investors with total risk-adjusted returns much greater than comparable investments.
Sellers & Brokers
VEP’s net lease acquisition experience exceeds 175 properties for over $500M. Always a cash buyer, VEP utilizes in-house underwriting and legal expertise to overcome challenges on the front-end, combining the creativity of an entrepreneur with the financial wherewithal of a powerful institution. VEP prides itself on the seamlessness of its underwriting process and the decisiveness of its negotiations.