Home News Industrial Property Trust to Buy $114.5 Million Portfolio

Industrial Property Trust to Buy $114.5 Million Portfolio

Industrial Property Trust Inc., a publicly registered non-traded real estate investment trust sponsored by Industrial Property Advisors Group LLC, signed an agreement to purchase the National Distribution Portfolio, comprised of seven industrial buildings totaling approximately 2.6 million square for $114.5 million, exclusive of closing costs. The sellers are unaffiliated with the company, and include AP Zephyr Street LLC, AP Commerce Parkway LLC, AP Polk Lane LLC, AP Quality Drive LLC, AP Quest Way LLC, AP MIAC Cove LLC and AP Pleasant Hill LLC.

The National Distribution Portfolio is located in the Indianapolis, Memphis, and Central Valley, California markets and is 84 percent occupied by eight tenants with a weighted-average remaining lease term of approximately 5.7 years.

The company expects to pay an acquisition fee to Industrial Property Advisors equal to 2 percent of the total purchase price, and plans to fund the acquisition using proceeds from its public offering and borrowings from its corporate line of credit.

The acquisition of the National Distribution Portfolio is expected to close during the first quarter of 2016.

Last week, The DI Wire reported that the REIT signed an agreement to purchase 15 industrial buildings in California for approximately $189 million.

As of September 30, 2015, Industrial Property Trust had acquired, either directly or through its 51 percent ownership interest in a joint venture partnership, 91 industrial buildings totaling approximately 13.2 million rentable square feet in 15 major industrial markets for an aggregate purchase price of approximately $1 billion.