Eagle Point Credit Management has backed the recapitalisation of Tanenbaum Equity Partners’ $450m (€395m) US government-leased 1.6m sqft nationwide real estate portfolio by way of a preferred equity investment.
The recapitalisation of the 98-property TEP Government Holdings is also supported by senior debt from Centennial Bank alongside equity from TEP’s principals.
The portfolio spans 24 states and is 98% occupied across 30 federal government agencies, with a weighted average remaining lease term of 5.2 years, TEP said.
Sunny Sajnani, CEO of Tanenbaum Equity Partners, said: “Over the last decade, we’ve built one of the nation’s largest privately owned portfolios of federally leased real estate.
“This recapitalisation establishes a long-term capital structure that reflects the quality and stability of our assets while creating a strong foundation for the next phase of our acquisition strategy.”
Richard Tanenbaum, chairman of Tanenbaum Equity Partners, said: “I’ve spent my career focused on building real estate platforms that can perform through changing market cycles, and this transaction reflects that same long-term philosophy.
“What the TEP team has built in the government-leased sector is exceptional. This recapitalisation validates the strength of the portfolio and gives us the flexibility to continue growing it thoughtfully for the next generation.”
Jaime Milgram, vice president at Eagle Point, said: “Government-leased real estate offers durable cash flows and attractive risk-adjusted characteristics. TEP has assembled a high-quality portfolio that aligns well with our investment strategy, and we’re pleased to support the platform’s next stage of growth.”
Becky Tanenbaum Mallace, COO of Tanenbaum Equity Partners, said: “Federal agencies continue to rely on specialised facilities owned by the private sector, creating durable demand for well-located government-leased assets.
“Through disciplined acquisitions, proactive asset management, and a strong lease renewal track record, we’ve built a portfolio designed for long-term performance. This recapitalisation positions us to continue executing that strategy for years to come.”
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