Vault Equity Partners was founded on the principles of building solid, equitable and long-term relationships.
Net lease real estate is the single most scalable form of real estate to acquire and manage in the entire commercial real estate universe due to the structure of the leases, fungibility of the boxes and variety of price points. Further, net lease retail assets leased to national, creditworthy retailers provide extraordinary transparency into the health and stability of the tenants. And net lease retail assets often occupy irreplaceable real estate making it relatively simple to ascertain true residual values. Therefore, net lease retail real estate assets offer a rare combination of institutional quality with entrepreneurial scalability.
Less than 5% of the $2.5 trillion of net lease real estate in the United States is owned by publicly-traded REITs. Therefore, the opportunity to aggregate net lease assets via a family of highly-diversified, well-constructed funds is expansive. Brokers and developers of net lease assets number in the thousands, providing a fluid transactional environment in which to operate. VEP’s strategy is to carefully select from the thousands of available acquisition opportunities and acquire high-quality assets at accretive yields for our investors.
Net lease is a burgeoning space, only recently recognized as its own sector within commercial real estate. For example, the S&P 500 added its first net lease REIT in March, 2015. As an asset class, net lease is still finding its niche as primarily a financial vehicle or a real estate asset class. We believe it can be both and thus will maintain its value through both good cycles and bad. Therefore, the next decade will likely see continued influx of capital into the space with a demand for well-managed investment vehicles to continue to grow. VEP was created to absorb some of the pent up demand from both institutional and individual investors to deploy mindful capital into the space.