Broad Street Realty, Inc. (OTCQX: BRST), a fully integrated and self-managed publicly owned real estate company focused on Essential grocery anchored and mixed-use assets, announces that through a newly formed subsidiary it has secured an $80 million preferred equity Investment and a property specific $15 million mezzanine loan from an affiliate of Fortress Investment Group LLC.
Michael Z. Jacoby, Chairman of the Board of Directors and Chief Executive Officer of the Company, said, “We are proud to announce the expansion of our successful relationship with Fortress by entering into a new joint venture. Just as important as their capital, they bring to the table a world class institutional real estate team that we believe will help accelerate us towards the next step in the growth and profitability of our organization and liquidity for our shareholders”.
Noah Shore, Fortress Managing Director, said: “We have deep respect for the Broad Street team and their proven, highly focused and disciplined investment approach. We are excited to announce this new joint venture, which we believe is exceptionally well-positioned to capitalize on additional opportunities in Broad Street’s targeted markets.”
In connection with the investment, Fortress joins Broad Street’s Board with a director and observer seat. Noah Shore will serve as the Board member on Broad Street’s Board of Directors. The Fortress investment provided Broad Street with the capital to complete its previously announced merger of the 98% leased 187,000 square foot Lamar Station Plaza shopping center and its acquisition of 6575 W. Colfax Avenue, an adjoining property in Lakewood, Colorado. In addition, Broad Street acquired the mixed-use portion of Midtown Row in Williamsburg, Virginia which includes 240 student housing units and 64,000 square feet of retail space. The balance of the investment is being used to retire several other loans and a previous preferred investment and to provide working capital to the Company.
About Broad Street Realty, Inc.
Broad Street Realty, Inc. is focused on Essential grocery anchored and mixed-use assets located in densely populated technology employment hubs and higher education centers within the Mid-Atlantic, Southeast and Colorado Markets. Our goals are to find assets with both sustainable cash flow and the opportunity to drive same store NOI. Our highly experienced leadership team, their historic success and industry relationships, a disciplined investment approach, analytic expertise, and an obsession over customer service allow for us to provide attractive AFFO grow.
About Fortress Investment Group LLC
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $45.7 billion of assets under management as of September 30, 2022, on behalf of over 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
