For a Hot New REIT, Go to Chambers Street
Like many of the other leading freestanding REITs such as Realty Income
With operating fundamentals that compare favorably with W.P. Carey and Lexington Realty Trust
The majority of Chambers Street properties are located in the U.S. and no market represents more than 10% in the company's portfolio. Many of the properties are located in gateway markets such as metropolitan New York City and the Washington, D.C., metro area.
In addition, Chambers Street has around 9% exposure in Europe -- 4.1% in Europe and 4.9% in Germany (the combined European portfolio has 13 properties valued at around $335.8 million). Chambers Street's largest tenant (by exposure) is Amazon
Chambers Street has many nationally recognized tenants that conduct operations in 25 distinct industries. This diverse tenant base provides for an attractive mix of defensive industries including pharmaceutical and health care, consumer products, and defense and aerospace.
It's important to recognize that Chambers Street is not a new REIT. The company has actually been around since 2004 when it operated under the name of CB Richard Ellis Realty Trust. The initial capitalization was commenced when the company was an externally managed REIT with an initial $55 million private placement (common shares placed by Wells Fargo
Since that time, Chambers Street has grown from $47 million to over $3.14 billion today. Most of the growth (89%) occurred after 2007 when the company acquired around $2.8 billion in assets (as a non-traded REIT).
I like Chambers Street and I believe the management team, led by founder, President and CEO Jack Cuneo, will be a fine addition to the public REIT space.