Tanenbaum Equity Partners (“TEP”), a Dallas-based commercial real estate investment firm specializing in government-leased properties, today announced the successful recapitalization of TEP Government Holdings, LLC, its nationwide government-leased real estate portfolio. The recapitalization consists of senior debt from Centennial Bank, a preferred equity investment from Eagle Point Credit Management LLC (“Eagle Point”) and existing common equity controlled by TEP’s principals, resulting in a total portfolio value of approximately $450 million.

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San Bernardino, CA - Social Security Administration

San Bernardino, CA – Social Security Administration

The portfolio comprises 98 properties totaling approximately 1.6 million square feet across 24 states, leased primarily to 30 federal government agencies. By consolidating multiple property-level financings into a unified capital structure, the transaction enhances operational efficiency, improves cash flow and positions TEP for continued growth through future acquisitions.

“Over the last decade, we’ve built one of the nation’s largest privately owned portfolios of federally leased real estate,” said Sunny Sajnani, Chief Executive Officer of Tanenbaum Equity Partners. “This recapitalization establishes a long-term capital structure that reflects the quality and stability of our assets while creating a strong foundation for the next phase of our acquisition strategy. We’re proud to partner with Centennial Bank and Eagle Point as we continue to expand our platform.”

The transaction also marks another milestone in a real estate career spanning more than 35 years for TEP Chairman Richard Tanenbaum. Since 1997, Tanenbaum has overseen the expansion of the affiliated Gardner Tanenbaum commercial portfolio from approximately 800,000 square feet to more than 8 million square feet, while completing nearly 50 projects totaling more than $1 billion across multifamily, industrial, retail and office development. That long-term ownership and development perspective helped shape TEP’s disciplined approach to building its government-leased platform.

“I’ve spent my career focused on building real estate platforms that can perform through changing market cycles, and this transaction reflects that same long-term philosophy,” said Richard Tanenbaum, Chairman of Tanenbaum Equity Partners. “What the TEP team has built in the government-leased sector is exceptional. This recapitalization validates the strength of the portfolio and gives us the flexibility to continue growing it thoughtfully for the next generation.”

Government-leased real estate continues to attract institutional investors because of its investment-grade tenancy, long lease durations, and historically stable cash flows. TEP’s portfolio is 98% occupied with a weighted average remaining lease term of 5.2 years. Completed during a period of continued selectivity in commercial real estate investment, the transaction reflects strong institutional confidence in the long-term fundamentals of government-leased assets.

“Government-leased real estate offers durable cash flows and attractive risk-adjusted characteristics. TEP has assembled a high-quality portfolio that aligns well with our investment strategy, and we’re pleased to support the platform’s next stage of growth,” said Jaime Milgram, Vice President at Eagle Point.

“Federal agencies continue to rely on specialized facilities owned by the private sector, creating durable demand for well-located government-leased assets. Through disciplined acquisitions, proactive asset management, and a strong lease renewal track record, we’ve built a portfolio designed for long-term performance. This recapitalization positions us to continue executing that strategy for years to come,” said Becky Tanenbaum Mallace, Chief Operating Officer of Tanenbaum Equity Partners.

TEP Government Holdings will continue to be managed by TEP, which oversees acquisitions, asset management, and investor relations for the platform. Led by TEP’s executive team and supported by Tanenbaum’s decades of development, ownership and investment experience, TEP combines specialized government-leased real estate expertise with a broader institutional real estate perspective. Raymond James served as exclusive financial advisor to TEP on the transaction.

Transaction Highlights

  • Portfolio value: Approximately $450 million

  • Portfolio: 98 properties; 1.6mm square feet

  • Footprint: 24 states

  • Tenancy: 30 federal government agencies

  • Occupancy: 98%

  • Weighted average remaining lease term: 5.2 years

  • Senior lender: Centennial Bank

  • Preferred equity partner: Eagle Point

  • Exclusive financial advisor: Raymond James

About Tanenbaum Equity Partners

Tanenbaum Equity Partners is a Dallas-based commercial real estate investment firm focused on acquiring, owning, and managing government-leased properties throughout the United States. The firm is led by CEO Sunny Sajnani, COO Becky Tanenbaum Mallace, and Chairman Richard Tanenbaum. TEP is an affiliate of Gardner Tanenbaum Holdings, an Oklahoma City-based real estate investment and development company primarily focused on multifamily and industrial real estate.

About Centennial Bank

Centennial Bank provides commercial banking and financing.

About Eagle Point Credit Management

Eagle Point® is an investment manager focused on private credit strategies in inefficient markets, including Portfolio Debt Securities, Regulatory Capital Relief transactions, Infrastructure Credit, Strategic Credit investments, Specialty Finance and CLO securities. Eagle Point manages $14 billion on behalf of institutional and retail investors and has over 120 professionals.

About Raymond James

Raymond James is a leading diversified financial services company providing investment banking, capital markets, and financial advisory services. Its Real Estate Investment Banking group advises public and private real estate companies on capital raising, recapitalizations, mergers and acquisitions, and other strategic transactions.

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