July 15, 2019— Guardian Advisory, LLC, a Southern California-based commercial real estate investment firm, has announced the launch of a retail-focused investment fund vehicle targeting $50 million in equity to reach $100 million in buying power. The fund, Guardian Net Lease Fund I, LP, will be managed by Guardian CRE, LLC as its general partner, and will invest principally in single-tenant net leased (NNN) retail properties throughout the U.S.
“There is a tremendous competitive advantage to investing in NNN retail properties,” says David E. Hooston, designated manager of Guardian CRE, LLC. “These assets represent consistently stable investments, characterized by long-term in-place leases with national credit tenants allocated between geographic and industry diversification.”
Hooston notes that institutional and private equity investors are increasingly focused on niche strategies like the Fund, which are now seen as prime opportunities given targeted valuations metrics against risk-adjusted returns seen elsewhere in the private equity sector.
“By launching a niche-focused fund at this point in the market cycle, we are giving accredited investors the opportunity to place capital into a vehicle with a history of long-term stability combined with targeted life-of-fund returns between 8 and 10%,” says Hooston.
The Guardian Net Lease Fund will target properties that are already occupied by national credit tenants such as 7-11, CVS, Walgreens, Dollar General and O’Reilly Auto Parts, among others.
The Fund is led by three real estate and finance veterans with experience including more than $10 billion in financing placed and over $25 billion in commercial real estate purchased, managed and sold.
Hooston, a finance executive with experience spanning more than $26 Billion in real estate and capital campaigns, will oversee the Fund’s strategic vision, financial reporting and investor relations. Hooston served in senior leadership roles with major banks in New York, Northern and Southern California, the Pacific Northwest, and San Juan Puerto Rico where he raised more than $1 billion in capital through private equity and public markets through NASDAQ and NYSE, including the management of three IPOs and two follow-on raises.
John Halvorson, an expert in net leased property investments, will oversee the Fund’s acquisition and property management strategies. Halvorson has a 30-year tenure in commercial banking and real estate and has managed a multi-million-dollar family portfolio for over a decade. A licensed California Real Estate Broker, he is also a specialist in 1031 exchange transactions, through which he structures tailored debt facilities that provide the flexibility needed for the profitable operation of net leased properties.
Mike Kron, an industry leader with experience spanning more than $1 billion in property transactions, will chair the Fund’s specific property investment decisions. Kron is COO of a family office with more than 13,000 multifamily units in Arizona and Texas and is also a licensed attorney.
Guardian Advisory, LLC has opened two levels of investment in its Net Lease Fund, including Class A Member Interests in the General Partner, Guardian CRE, LLC, and Limited Partner Interests in Guardian Net Lease Fund I, LP.
Class A memberships in Guardian CRE, LLC, at $25,000 per member interest, are projected to earn annual returns of 30%, once the Fund is fully invested, comprised of management fees, and preferred returns on Fund net cash flow. Additional returns may result from gain on sale of investments when the Fund liquidates.
Limited Partners Interests in Guardian Net Lease Fund I, LP will be offered at $25,000 per Limited Partner Interest, with a $100,000 minimum investment. The Fund is targeted to pay an annualized 5% cash distribution with lifetime compound returns targeted at 8% to 12%.