$30M FOR A LATTE?
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|Collins Capital and Main & Main Capital created a joint venture:Collins Main Core Asset Fund 1, in anticipation of having $30M to spend by the end of the 2Q. The minority-owned fund will acquire single tenant, triple net lease retail assets (like McDonald’s or Starbucks) across the Sun Belt.|
Collins Capital’s De’Juan and De’On Collins book-end Main & Main’s Garret Reed. Already, $20M in projects have been identified, and the JV is prepping to raise $100M for Fund 2 by year’s end. Typical properties will have long-term leases of 15 years or more. The fund attracts more conservative institutional investors like pension funds, De’Juan says. They’re credit tenants, and the returns are a safer bet because they’re based on executed leases, which, in these times, Garrett tells us, isn’t a bad thing. He adds, this fund is different from most real estate funds, which usually bet on the economy; this fund is more like a bond.
One of the targeted properties is this Christian Brothers Automotive Center, which De’Juan tells us has caught the eye of investors. De’On says institutional investors are searching for a reliable income stream—as equities are cutting rates and dividends, and treasuries are not paying a great yield. Away from investments, De’On and De’Juan mentor students at a local middle school. To beat the stress of work, Garrett works out about 90 minutes daily. He and his wife are also in the final stages of organizing a 501(c)(3), Benevolent Bridges, to help single mothers undergoing chemotherapy.