MAG Capital Partners has closed the disposition of a sizable net-lease industrial portfolio, selling more than 1.37 million square feet of long-term, net-leased industrial assets in a six-property transaction. The portfolio, made up of industrial manufacturing facilities located across the Midwest, was sold for approximately $89 million.
The assets were primarily acquired through MAG Capital Partners’ MAGCP Industrial Fund II, LP, and were structured on triple-net leases to industrial users. The transaction underscores the firm's focus on pairing capital with operating companies that rely on mission-critical manufacturing real estate.
The buyer is Fundamental Income Properties, a wholly owned subsidiary of Starwood Property Trust. By acquiring the six-property portfolio in a single transaction, Fundamental Income Properties expands its exposure to net-lease industrial assets, with the properties backed by long-term tenancy from U.S. manufacturing users.
Dax T.S. Mitchell, principal and co-founder of MAG Capital Partners, noted that the firm is continuing to scale its various platforms focused on supporting U.S. manufacturers with growth capital via industrial real estate and corporate investment. He framed the sale as an example of the strength and quality of the middle market and the depth of operating partners and sponsors in the manufacturing sector.
Mitchell also emphasized the ongoing importance of manufacturing as a core driver of the American economy, suggesting that the industrial net-lease segment remains well-positioned within commercial real estate. The long-term, triple-net structure of the leases in the portfolio reflects a strategy aimed at stable, predictable cash flows secured by operating company credit.
The six manufacturing properties in the portfolio are spread across the Midwest, a region that continues to play a significant role in the country's industrial and manufacturing base. While specific tenant names and locations were not disclosed, the properties are described as industrial manufacturing facilities leased on a long-term, triple-net basis.
On the execution side, John Dehn and Eric Wood, senior vice presidents in MAG Capital Partners' Phoenix office, led the disposition efforts on behalf of the seller. Their work included coordinating the sale of the multi-state industrial portfolio to Fundamental Income Properties as a consolidated transaction.
The trade from MAG Capital Partners to a subsidiary of Starwood Property Trust highlights ongoing institutional interest in net-lease industrial portfolios and reflects continued capital allocation to manufacturing-backed credit in the U.S. industrial real estate market.
