Industrial Property Trust Inc., a publicly registered non-traded real estate investment trust, signed an agreement to purchase a 3-million-square-foot portfolio comprised of seven industrial buildings for $187.5 million. The acquisition is expected to close during the second quarter of 2016.
The properties are located in the Southern California, Atlanta, Louisville, Chicago, and Charlotte markets and are 100 percent occupied by 12 tenants. The weighted-average remaining lease term is approximately 1.8 years.
In connection with the potential purchase, the REIT deposited $7.5 million into an escrow account.
In other Industrial Property Trust news, the company purchased $1.1 billion in real estate in 2015, as reported by The DI Wire.
Industrial Property Trust focuses on acquiring and operating distribution warehouses that are leased to corporate tenants. It targets markets that have high barriers to entry, close proximity to large demographic bases, and/or access to major distribution hubs. Its portfolio includes 152 industrial buildings totaling approximately 20.6 million square feet with a total purchase price of $1.6 billion. The REIT went effective in July 2013 and raised $1.2 billion since inception, according to the most recent Stanger Market Pulse.