Rodin Global Property Trust Inc., a publicly registered non-traded real estate investment trust, along with a subsidiary of its sponsor Cantor Fitzgerald Investors LLC, has made an $11.8 million investment in a joint venture that purchased a $117.1 million cold storage and warehouse distribution facility located in Denver, Pennsylvania. The REIT funded its portion with cash from its initial public offering.
The $11.8 million investment was made through a single purpose limited liability entity, in which Rodin Global Property Trust owns a 40.5 percent interest and Cantor Fitzgerald Investors owns the remaining 59.5 percent. The REIT intends, but is not obligated, to purchase 100 percent of the membership interests of the single purpose entity from its sponsor.
The entity entered into a joint venture agreement with a subsidiary of USRA Net Lease III Capital Corp.
The 1.8 million-square-foot property is fully leased to New Albertsons L.P., a subsidiary of grocery chain Albertsons Companies Inc., which serves as the guarantor of the lease. Their annual rent is approximately $7.3 million, subject to annual escalations.
The acquisition was also financed by a $76.7 million mortgage loan provided by Goldman Sachs Mortgage Company.
Through a similar single purpose entity with its sponsor, Rodin Global Property Trust also originated a $12.6 million fixed rate, subordinate mezzanine loan to Chicago Grocery Mezz B LLC, which is owned and controlled by USRA, for the acquisition of a 1.6 million-square-foot cold storage and warehouse distribution facility located in Melrose Park, Illinois that was purchased for nearly $125 million. Goldman Sachs Mortgage provided a $41.5 million mortgage loan and a $40.5 million senior mezzanine loan for the acquisition.
The Melrose Park property is also 100 percent leased to New Albertsons L.P. for approximately $7.8 million per year with annual escalations.
Rodin Global Property Trust invests primarily in single-tenant net leased commercial properties located in the United States and Europe and raised approximately $90.4 million in investor equity, as of January 8, 2018. As of the third quarter 2018, the company had invested approximately $81 million in real estate and real estate-related assets, according to Summit Investment Research. Unless extended, the primary offering is expected to close on March 23, 2019.