FI Master Trust raises $328.9 million in CMBS issuance


Fundamental Income Properties, a Phoenix-based real estate finance company, is raising $328.9 million backed by commercial net leases on single-tenant properties. This is the inaugural deal from its FI Master Trust program.

Atlas SP Securities arranged the transaction, a private placement deal that priced about a little over a week ago, Fundamental Income chief executive officer Chris Burbach told Asset Securitization Report via email. The properties are located in 40 states, serving tenants in 39 industries. The transaction issued the notes through two classes, and in the future the company plans to issue one or two deals a year from the master trust. The program will use the proceeds from the current transaction to repay a line of credit facility, Burbach said.

High-level institutional investors purchased two classes of notes from this issuance, both of which are five-year notes and benefit from overcollateralization equal to 35%, said Burbach. S&P Global Ratings assigned ‘AA’ to the $182 million, class A-1 notes and ‘A’ to the $146.7 million, class A-2 notes.

Brookfield Asset Management backs Fundamental Income, which has already financed some $1.2 billion in net-lease properties, mostly single-tenant, since it was founded in April 2020, according to the company’s statement.

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