MacKenzie Realty Capital Inc., a publicly registered non-traded real estate investment trust, has entered into a $20.4 million membership interest purchase agreement with The Wiseman Co. LLC to acquire general partner interests in eight limited partnerships and one land parcel.
The transaction is expected to close in the second quarter of 2022.
According to an 8-K filed with the Securities and Exchange Commission, the Wiseman limited partnerships own and manage office buildings in Napa, Fairfield, Suisun City and Woodland, California. MacKenzie will purchase these interests for approximately $17.3 million. The three-acre parcel, located in Fairfield, has been entitled as an office building and will trade for approximately $3 million.
As part of the agreement, MacKenzie will also purchase Wiseman’s remaining properties during the next two years on similar terms and conditions to the initial purchase. Separately, MacKenzie’s advisor is buying Wiseman’s assets and operations. The Wiseman team will continue providing management and development services to the properties.
Wiseman, headquartered in Fairfield, has developed and managed Class A office properties in the Napa and Fairfield areas for more than 30 years.
“We are very pleased to partner with a high-quality operator like The Wiseman Co., and even more so as the deal we structured provides a captive, and very attractive, pipeline of acquisitions which we intend to close one at a time as we raise funds or liquidate other investments over the next two years,” said Robert Dixon, president of MacKenzie. “We believe our goal of future dividend increases will be further supported by the Wiseman acquisitions.”
MacKenzie Realty Capital is managed by MacKenzie Capital Management and MCM Advisers. The company acquires illiquid securities to build diversified portfolios of income-producing REITs and limited partnerships. The company launched its initial public offering in August 2013 and has raised approximately $131.08 million in investor equity, including proceeds from its dividend reinvestment plan of approximately $11.89 million, as of December 31, 2021.