CIM Real Estate Finance Trust Inc., a publicly registered non-traded real estate investment trust, has sold The Plant, a 509,000 square foot open-air shopping centers in San Jose, California for approximately $175 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 sixth tranche 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.
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.
To date, 80 of the 81 properties have closed, representing $1.2 billion of the total $1.3 billion contract purchase price, and $110 million of the total $115 million annualized straight-line rent.
“The Plant is a highly desirable asset in the portfolio of open-air shopping centers we have acquired in 2022,” said Michael Weil, CEO of The Necessity Retail REIT. “We are excited to add The Plant to our portfolio and to now have completed over 90 percent of the CIM acquisition, based on purchase price. We have already started to benefit from the accretive impact of these acquisitions in the first quarter, and we look forward to realizing the long-term benefits we believe these properties will provide…”
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.
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.