CBRE Investment Management Acquires Tenet Equity for $1.6 Billion, Launching Triple Net Lease Strategy

CBRE Investment Management has acquired Tenet Equity from Cerberus Capital Management for $1.6 billion, the firms announced Sept. 8, gaining an immediately scaled net lease platform and simultaneously launching a dedicated triple net lease investment strategy.

The transaction gives CBRE Investment Management a fully leased portfolio of 208 net lease assets totaling approximately 12 million square feet across 39 states, 26 industries, and more than 65 tenants, with a weighted average lease term of 16.7 years. CBRE Investment Management is making the investment on behalf of several of its investment strategies.

Platform Origins and Sale Process

Cerberus Capital Management founded Tenet in 2021 alongside Executive Partners Nicholas Eggert and Andrew Gallagher, building the company into a provider of triple net lease financing to middle-market companies and financial sponsors across the United States. Over five years, Tenet grew its portfolio to more than 200 properties and established access to institutional capital markets, completing an inaugural triple-net lease securitization of roughly $265 million in October 2024.

Evercore served as exclusive financial advisor to Cerberus on the sale, and Kirkland & Ellis LLP served as legal counsel. Truist Securities acted as financial advisor to CBRE Investment Management.

Tom Wagner, Head of North American Real Estate at Cerberus, said the firm was proud of what the platform had become. "Tenet has grown significantly under our leadership and delivered significant value for both our investors and its customers," Wagner said.

Chris Volk, Chairman of the Board of Tenet Equity, credited both the financial sponsor and the management team. "Cerberus was an ideal financial partner from the beginning, delivering a combination of capital, business knowledge and net lease market expertise. In just a few years, Nick, Andrew, and our team have grown the company from an idea to an established, scaled, diversified, market-leading company with a deep and talented team," Volk said.

Tenet's Business Model and Portfolio

Tenet, headquartered in Scottsdale, Arizona, specializes in sale-leaseback financing — providing long-term capital solutions that allow middle-market companies to monetize real estate critical to their operations while retaining operational control. The company pairs credit underwriting with real estate analysis, targeting single-tenant, mission-critical facilities whose real estate is directly tied to tenant revenue generation.

The portfolio's contractually growing rental income structure and long lease terms are central to the investment thesis CBRE Investment Management is presenting to clients. CBRE Investment Management estimates that several trillion dollars of corporate-owned operational real estate sits on the balance sheets of middle-market companies in North America, with institutional investors holding approximately 1% of that addressable market.

Nicholas Eggert, founding CEO of Tenet, said the company's commitment to its customers would not change. "With CBRE Investment Management's deep operating expertise and global investor relationships behind us, Tenet is better positioned than ever to accelerate our growth and maintain our continued leadership in the net lease industry for years to come," Eggert said.

CBRE IM's Strategic Rationale

Adam Gallistel, Co-Chief Executive Officer and Chief Investment Officer of CBRE Investment Management, framed the acquisition as a way to deliver a specific type of income exposure to clients. "Net lease offers what few sectors can: durable, growing, inflation-protected income with long lease terms and low capital requirements," Gallistel said. "We are excited to deliver compelling investment opportunities to our clients by pairing our portfolio management and execution capabilities — together with the net lease resources of CBRE Group — with Tenet and its proven track record of sourcing and managing mission-critical real estate."

In conjunction with the acquisition, CBRE Investment Management is launching a strategy to further invest in net lease assets and support the ongoing growth of the Tenet platform. Akash Shivashankara, a senior Portfolio Manager at CBRE Investment Management with more than 20 years of experience managing operating partnerships, will head the strategy.

Market Context

The acquisition comes as net lease investment volume has been rising. U.S. net lease investment volume reached $16.0 billion in the fourth quarter of 2025, up 38% quarter-over-quarter and 13% year-over-year, contributing to a 16% full-year increase to $51.4 billion. By the second quarter of 2026, net lease investment volume had increased an additional 13% year-over-year to $12.8 billion, representing 10% of total commercial real estate investment, with the trailing twelve-month total climbing to $57 billion.

CBRE Investment Management manages $154.8 billion in assets under management as of June 30, 2026, and operates in 20 countries. It is an independently operated affiliate of CBRE Group, Inc.

Sources

• CBRE Investment Management Press Release
• Cerberus Capital Management Press Release via PR Newswire