Deal Details

Broad Street Receives Strategic Investment From Fortress

Real Estate

Broad Street strategic investment from Fortress

Summary

Broad Street Realty, Inc. (“Broad Street”) received a strategic investment of $95 million from Fortress Investment Group (“Fortress”) to fund acquisitions, consolidate outstanding debt, and for general corporate purposes. The strategic investment is comprised of $80 million preferred equity and $15 million mezzanine financing and inclusive of these amounts, $25 million of the strategic investment is mandatorily convertible into common equity upon Broad Street meeting certain terms and conditions.

Baird served as co-financial advisor to Broad Street on this transaction. Baird has served as Broad Street’s financial advisor since 2019 and previously advised on Broad Street’s merger with a publicly traded company as well as placement agent for senior and preferred equity financing.

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. This was the second major transaction the Baird team has successfully helped us complete.
Michael Z. Jacoby, Chairman of the Board of Directors and Chief Executive Officer - Broad Street Realty, Inc.

About

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. Broad Street's goals are to find assets with both sustainable cash flow and the opportunity to drive same store NOI. Broad Street's 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 growth.

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.

Real Estate

Broad Street strategic investment from Fortress