Montgomery Street Partners launches $1b ground-lease REIT

Montgomery Street Partners has formed a new venture with a U.S.-based Fortune 500 global insurance company to invest in ground leases in the top 50 U.S. metropolitan markets. The venture will operate under the Ground Lease REIT banner, with Montgomery Street Partners acting as the REIT’s external manager.

The REIT intends to deploy $1 billion of gross capital over the next several years through the origination of ground leases on well-located real estate assets across all property types. GLR will also acquire existing ground leases that fit its investment criteria. The venture will target ground-up developments, redevelopments, and existing cash-flowing properties.

MSP also announced the expansion of its operations with a New York office. MSP is taking space in 315 Park Avenue South, a class A office building in the Midtown South submarket. The lease marks MSP’s first East Coast office and supports its efforts to advance GLR’s investment strategy.