The Shidler Group has founded and initially capitalized numerous companies that were created to address fundamental shifts and changes in the real estate and capital markets.
Terra Funding Trust (“Terra Funding”) is a specialized investment entity within The Shidler Group that invests in and loans on Leased Fee interests, parcels of land underlying multi-tenant commercial buildings, which are subject to long-term ground leases.
Terra Funding makes its investments on behalf of partners of The Shidler Group, The Shidler Family Trust and The Shidler Family Foundation for the benefit of the educational institutions that it supports.
The Shidler Group formed Corporate Office Properties Trust, Inc. (NYSE: OFC) through a contribution of its mid-Atlantic suburban office operations to, and merger with, Royale Investments, Inc., a small NASDAQ-listed REIT. Following the merger, Corporate Office acquired the real estate division of Baltimore Gas & Electric.
Corporate Office was one of the first REITs to give investors the opportunity to invest in “essential need” U.S. government-related facilities and is a major owner of office buildings leased to companies in the defense industry.
The Shidler Group formed TriNet Corporate Realty Trust, Inc. (NYSE: TRI) in 1993. TriNet was the first REIT to give investors the opportunity to invest in commercial properties triple-net-leased to major corporations.
TriNet was active in providing post-LBO management with sale-leaseback financing used in the recapitalization of the new companies.
In November 1999, TriNet, then one of the largest providers of sale-leaseback financing in the U.S., merged with Starwood Financial Trust, now known as iStar Financial, Inc. (NYSE: SFI).
Recognizing the growing need for credit enhancement to the real estate-related structured finance market, The Shidler Group formed CGA Group, Ltd. and its subsidiaries, Commercial Guaranty Assurance, Ltd. and CGA Investment Management, Inc.
Commercial Guaranty Assurance was a AAA-rated financial guarantor based in Bermuda and was the first financial guarantor established specifically to provide credit enhancement for real estate-related securities. CGA Investment Management provided investment management services to the structured finance market from its base in New York City. In July 2001, CGA Group, Ltd. was effectively sold via a $400 million reinsurance agreement with its largest shareholder, ACE Limited.
Alliance Partners HSP, LLC (“Alliance”), an affiliate of The Shidler Group, is a private real estate investment and operating company focused on opportunistic investments in commercial properties located in the eastern and central United States.
Managing partners Clay Hamlin and Richard Previdi and the Alliance team combine extensive capital markets experience, real estate operating and redevelopment capabilities, with the financial agility and resources of its principals to produce superior risk-adjusted returns on its investments.
The Shidler Group formed National Warehouse Investment Company (“NWIC”) to provide sale-leaseback financing for LBOs. In its first transaction, NWIC acquired and leased back 117 freight and distribution facilities in 36 states as the final phase of the management-sponsored LBO of P-I-E Nationwide, Inc.
In 1988, NWIC acquired, via sale-leaseback, all of the industrial real estate owned by Palco, Inc. as a key part of Hicks & Haas’ LBO of that company.
Terra Hospitality Trust (“Terra Hospitality”) is a specialized investment entity within The Shidler Group that invests in Leased Fee interests, land underlying national branded hotels, which are subject to long-term ground leases.
Terra Hospitality focuses on land under branded hotels, having franchise agreements with the Hilton, Marriott, Hyatt, IHG and Starwood systems. Like Terra Funding, Terra Hospitality makes its investments on behalf of affiliates of The Shidler Group.
The Shidler Group formed First Industrial Realty Trust, Inc. (NYSE: FR) as a private company designed to emerge within 12 months as a public entity via an IPO.
In June 1994, First Industrial went public with a $389.5 million IPO of common stock and Jay Shidler as its Chairman. Concurrent with its IPO, the company was listed on the New York Stock Exchange.
First Industrial was the first REIT to give investors the opportunity to invest in a national portfolio of industrial facilities.
The Shidler Group formed Primus Guaranty, Ltd. (NYSE: PRS), a Bermuda holding company, and its subsidiaries, Primus Financial Products, Inc., a AAA/Aaa rated financial products company based in New York City and Primus Re, Ltd., a financial guarantor based in Bermuda.
Primus was established to be a highly rated wholesale provider of credit default swaps to institutions, primarily commercial banks, investment banks, and insurance companies. After two years of highly successful operations with a $6 billion book, Primus Guaranty went public with an IPO in 2004 and was concurrently listed on the NYSE.
The Shidler Group formed Blue Bell Investment Company, L.P. (“Blue Bell”) to buy and leaseback to Unisys Corporation its one million square foot world headquarters in Blue Bell, Pennsylvania. This transaction is believed to be the first non-investment grade credit tenant lease ("CTL")
In mid-1992, Blue Bell, through its subsidiary, Blue Bell Funding, Inc., publicly issued $65 million of rated notes, which were used to finance the acquisition. The Blue Bell sale-leaseback and single asset securitization was one of the first transactions of its kind. Blue Bell provided fixed income investors highly profitable credit exposure to Unisys Corporation with the rated debt obligations secured by essential corporate facilities.
The Shidler Group and Westinghouse Credit Corporation formed Shidler/West Finance Partners (“SWFP”) to acquire net leased corporate properties via sale-leasebacks.
The acquisitions were financed through the issuance of A-1, P-1 rated commercial paper issued by Westinghouse Shidler Funding Corporation (“WSFC”). WSFC was one of the first investment companies to fund the acquisition of corporate real estate using proceeds from the sale of commercial paper.
The Shidler Group formed Pacific Office Properties Trust, Inc. through a contribution of its Western U.S. portfolio and merger with a small AMEX-listed REIT.
Concurrent with the merger, the Company changed its name and shifted its focus to continue The Shidler Group’s strategy of acquiring and owning, often in partnership with institutional co-investors, core and value-added office properties.