CIM Real Estate Finance Trust Inc., a publicly registered non-traded real estate investment trust, entered into an agreement to sell 185 single-tenant net lease properties for approximately $894 million to Realty Income Corporation (NYSE: O).
CIM advised that it anticipates closing the transaction during the first quarter of 2023, subject to significant conditions.
The REIT noted that following the final closing of the transaction, CIM Real Estate Finance Trust’s remaining net lease portfolio is expected to consist of 199 properties encompassing approximately $6.4 million gross rentable square feet of commercial space. Those assets are 99.7% leased with a weighted average lease term of 12 years. The remaining net lease portfolio is primarily financed with a long-term, fixed rate asset-backed securitization.
According to CIM Real Estate Finance Trust, the proceeds from the transaction, net of the repayment of debt and other transaction costs, will be redeployed in accordance with the company’s investment strategy, with an immediate focus on secured loans and other similar credit investments.
As The DI Wire previously reported in December 2021, CIM Real Estate Finance Trust completed its merger with affiliated non-traded REIT, CIM Income NAV Inc., in a stock-for-stock merger transaction.
CIM Real Estate Finance Trust primarily owns and operates a portfolio of core commercial real estate assets consisting of net leased properties and a portfolio of commercial mortgage loans. The REIT launched its offering in January 2012 and raised more than $3 billion prior to closing in April 2014.