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. 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.”