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RREEF Property Trust buys in New Jersey

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RREEF Property Trust recently entered into an agreement of purchase and sale with DP 1109 Commerce, LLC. The acquired property is a 259,910 square foot warehouse located on 1109 Commerce Blvd. in Logan Township, New Jersey, approximately 24 miles south of Philadelphia.

The asset was purchased for approximately $19.75 million, exclusive of closing costs and with a $500,000 down payment. It is a multi-tenant, industrial warehouse on a 14.4 acre site with an adjacent 9.7 acre land parcel that could be developed.

RREEF America, a unit of Deutsche Asset & Wealth Management, is the sponsor for RREEF Property Trust, which is a continuously offered, publicly registered company that intends to qualify as a non-traded REIT. Its strategy is to invest in a mix of property, real estate securities, debt, and cash.

Just last week, RREEF Property Trust and its dealer manager, SC Distributors LLC, entered into a wholesaling agreement with Realty Capital Securities who will serve as distribution agent to raise up to $2.25 billion for the offering.

The New Jersey acquisition is the company’s third property in its real estate portfolio.[1] As of December 31, 2013, the company’s real estate equity securities portfolio consisted of publicly traded common stock of 45 REITS with a value of $2,882,206.

According to a filing, “We [RREEF Property Trust] believe that investing a portion of our proceeds from our offering into a diversified portfolio of common and preferred shares of REITs and other real estate operating companies will provide the overall portfolio some flexibility with near-term liquidity as well as potentially enhance our NAV over a longer period.”