CIM Real Estate Finance Trust Inc., a publicly registered non-traded real estate investment trust, has sold 23 open-air shopping centers for a $277.8 million to The Necessity Retail REIT Inc. (Nasdaq: RTL), a publicly traded REIT managed by AR Global and formerly known as American Finance Trust (Nasdaq: AFIN).
The sale represents the fourth and fifth tranches of a series of transactions that will result in CIM Real Estate Finance Trust selling all 81 of its shopping centers to The Necessity Retail REIT for $1.32 billion. To date, 79 of the 81 properties have closed, and the remaining two properties totaling approximately $200 million are expected to close by the end of second quarter 2022.
The total portfolio sale price will include up to $1.27 billion in cash, $53.4 million in Necessity Retail REIT common stock, and additional consideration based on certain performance measures of the sites during a 180-day period post-closing.
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, marking another step in its business plan execution and anticipated public listing in 2022.
In other company news, CIM Real Estate Finance Trust recently appointed Nathan D. DeBacker to the role of principle accounting officer. DeBacker replaces Jeffrey R. Smith, who resigned from the position effective April 27, 2022.
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.