Dallas Firm Closes $450 Million Refinancing of 98-Property Federal Portfolio

TEP Government Holdings consolidated property-level debt into a single capital structure with Centennial Bank and Eagle Point Credit Management, backing 1.6 million square feet leased to 30 federal agencies.

By the Family Office Real Estate Daily Desk·Monday, September 28, 2026·2 min read

Editorial summary of reporting byBusiness Wire / Yahoo Finance Our editorial standards →

The answer · checked against Business Wire / Yahoo Finance

What are the terms and structure of Tanenbaum Equity Partners' $450 million recapitalization of its government-leased real estate portfolio?

Tanenbaum Equity Partners, a Dallas-based commercial real estate investment firm, completed a $450 million recapitalization of TEP Government Holdings, LLC, consolidating property-level debt across a 98-property, 1.6-million-square-foot portfolio leased to 30 federal agencies in 24 states. The capital structure combines senior debt from Centennial Bank, preferred equity from Eagle Point Credit Management, and existing common equity controlled by TEP's principals. The portfolio is 98% occupied with a weighted average remaining lease term of 5.2 years.

Key facts

Tanenbaum Equity Partners completed a $450 million recapitalization of TEP Government Holdings, LLC on September 24, 2026, according to the company announcement.
The TEP Government Holdings portfolio comprises 98 properties totaling approximately 1.6 million square feet across 24 states, leased primarily to 30 federal government agencies.
The capital structure consists of senior debt from Centennial Bank, a preferred equity investment from Eagle Point Credit Management LLC, and existing common equity controlled by TEP's principals.
TEP Government Holdings reported 98% occupancy and a weighted average remaining lease term of 5.2 years, according to transaction highlights.
Raymond James served as exclusive financial advisor to Tanenbaum Equity Partners on the transaction.
Eagle Point Credit Management manages $14 billion on behalf of institutional and retail investors and has over 120 professionals, according to Eagle Point's company description.

Dallas Firm Closes $450 Million Refinancing of 98-Property Federal Portfolio — Image: editorial illustration · Story sourced from Business Wire / Yahoo Finance

Tanenbaum Equity Partners closed a $450 million recapitalization of its nationwide government-leased real estate portfolio in a transaction that consolidated multiple property-level financings into a unified capital structure. The Dallas-based firm arranged senior debt from Centennial Bank and a preferred equity investment from Eagle Point Credit Management, with TEP's principals retaining the common equity.

The portfolio comprises 98 properties totaling approximately 1.6 million square feet across 24 states, leased primarily to 30 federal government agencies. TEP said the transaction enhances operational efficiency, improves cash flow and positions the firm for continued acquisitions.

The portfolio is 98% occupied with a weighted average remaining lease term of 5.2 years. The transaction was completed during a period of continued selectivity in commercial real estate investment, the firm said.

"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."

The transaction marks a milestone in a 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, completing nearly 50 projects totaling more than $1 billion across multifamily, industrial, retail and office development.

Co-investment terms on recapitalizations are where families discover whether they are partners or exit liquidity, family office advisor Jaf Glazer has argued.

"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 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. Raymond James served as exclusive financial advisor to TEP on the transaction.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

The recapitalization structure offers a template for families evaluating government-leased real estate: a preferred equity layer sits between senior debt and common equity, allowing Eagle Point to capture yield without taking full property-level risk while TEP retains upside. Families considering co-investment alongside a sponsor in this sector should pressure-test whether the preferred return and liquidation preference leave sufficient cushion for the common equity in a downside case.

The portfolio's 5.2-year weighted average lease term is shorter than the 7-to-10-year terms typical of purpose-built government facilities, suggesting these properties may include leased office space in multi-tenant buildings rather than single-tenant federal installations. That distinction matters for residual value: a Social Security Administration field office in a standard office building carries re-tenanting risk at lease expiration, while a purpose-built CBP station or FBI facility has limited alternative use. Families underwriting government-leased assets should separate the two categories and price the rollover risk accordingly.

At $450 million for 1.6 million square feet, the portfolio implies a per-square-foot value of roughly $281. That figure is a blend across 24 states and 30 agency tenants, so pricing will vary by location, lease structure and tenant creditworthiness. A family evaluating a direct acquisition in this sector should benchmark against that number, adjusting for remaining lease term, tenant agency and whether the property is single-tenant or multi-tenant. If a sponsor is offering participation in a similar portfolio at a valuation materially above $300 per square foot, the arithmetic argues for caution unless the lease term or location mix justifies the premium.

The transaction occurred during a period the firm describes as continued selectivity in commercial real estate investment, yet TEP secured both senior debt and preferred equity at scale. That suggests government-leased real estate with investment-grade tenancy remains financeable even as other commercial sectors face tighter credit. Families with capital to deploy should consider whether this sector offers a relative-value opportunity: if office and retail face refinancing constraints and government-leased assets retain access to institutional debt and equity, the spread between stabilized cap rates in the two categories may widen further.

Questions this story answers

01What is the structure of the TEP Government Holdings recapitalization?

The recapitalization of TEP Government Holdings consists of three components: senior debt provided by Centennial Bank, a preferred equity investment from Eagle Point Credit Management LLC, and existing common equity controlled by Tanenbaum Equity Partners' principals. The transaction consolidated multiple property-level financings into a unified capital structure, resulting in a total portfolio value of approximately $450 million.

02Who are the tenants in the Tanenbaum Equity Partners government-leased portfolio?

The TEP Government Holdings portfolio is leased primarily to 30 federal government agencies across 98 properties in 24 states. Properties in the portfolio are occupied by agencies including the Social Security Administration, U.S. Customs and Border Protection, the Federal Bureau of Investigation, and the Department of Veterans Affairs, according to the company announcement.

03What is the occupancy rate and lease term for the TEP Government Holdings portfolio?

TEP Government Holdings reported a portfolio occupancy rate of 98% and a weighted average remaining lease term of 5.2 years, according to the transaction highlights released September 24, 2026.

04What is Eagle Point Credit Management's role and size in this transaction?

Eagle Point Credit Management LLC served as the preferred equity partner in the $450 million recapitalization of TEP Government Holdings. Eagle Point manages $14 billion on behalf of institutional and retail investors and has over 120 professionals. Jaime Milgram, Vice President at Eagle Point, said the TEP portfolio aligns well with Eagle Point's investment strategy.

05What is the background and track record of Tanenbaum Equity Partners' leadership?

Tanenbaum Equity Partners is led by CEO Sunny Sajnani, COO Becky Tanenbaum Mallace, and Chairman Richard Tanenbaum. Richard Tanenbaum has a real estate career spanning more than 35 years. Since 1997, Tanenbaum oversaw the expansion of the affiliated Gardner Tanenbaum commercial portfolio from approximately 800,000 square feet to more than 8 million square feet, completing nearly 50 projects totaling more than $1 billion.

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Original reporting

Business Wire / Yahoo Finance

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