Cerberus Sells Tenet Equity to CBRE for $1.6 Billion as Demand for Real Estate Financing Grows

U.S. private equity firm Cerberus Capital Management has agreed to sell its real estate finance company Tenet Equity to CBRE Investment Management for $1.6 billion, in a major transaction highlighting growing investor interest in real estate assets that can generate stable, long-term income.

Cerberus announced the deal on Tuesday, September 8, saying Tenet Equity will become part of the asset management arm of CBRE Group, one of the world’s largest commercial real estate services and investment firms. The transaction gives CBRE greater exposure to real estate-backed financing and expands its portfolio of properties and investments across the United States.

Cerberus founded Tenet Equity in 2021 with a focus on providing financing backed by real estate to middle-market companies and private equity firms. Based in Scottsdale, Arizona, Tenet has built a portfolio that currently includes more than 200 properties across 26 industries in 39 states.

The sale comes at a time when higher borrowing costs are putting pressure on companies seeking traditional financing. As interest rates and financing expenses remain elevated, businesses have increasingly turned to sale-leaseback transactions to unlock capital tied up in their real estate while continuing to operate from the properties.

Investors have also shown strong interest in properties with long-term leases because they can provide relatively predictable income streams. That demand has helped increase the appeal of real estate strategies focused on stable cash flows and financing opportunities.

For CBRE Investment Management, the acquisition represents an opportunity to expand its presence in a specialized segment of the real estate market. The deal could also strengthen CBRE’s ability to provide capital solutions to businesses and investors seeking financing secured by property assets.

Cerberus was advised exclusively by investment bank Evercore on the transaction. Following the announcement, CBRE shares rose 1.2% in after-hours trading, indicating a positive initial response from investors.

The $1.6 billion transaction underscores the continuing transformation of the U.S. real estate finance market, where high borrowing costs, demand for liquidity and investor preference for dependable income are reshaping how companies use their property assets to raise capital.