ElmTree currently leases over 250 commercial properties across the US, with a focus on long-term, single-tenant leases in the industrial sector, a resilient segment in the commercial real estate market.
“Structural shifts in the real estate sector are creating new opportunities for private capital,” said Scott Kapnick, CEO of HPS and chairman of BlackRock’s Private Financing Solutions unit.
This transaction represents another step in BlackRock CEO Larry Fink’s long-term strategy to diversify the firm’s offerings beyond traditional stock and bond portfolios, targeting private real estate, infrastructure, and credit markets.
“The future standard portfolio may look more like 50/30/20 — stocks, bonds, and private assets like real estate, infrastructure, and private credit,” Fink wrote in his April 2025 shareholder letter, emphasizing the shift away from the classic 60/40 investment model.
Read next: How brokers can determine if a private money loan is right for their client