RREEF Property Trust Inc. (NASDAQ: ZRPTAX; ZRPTIX; ZRPTTX), a publicly registered, daily NAV REIT advised by DWS Group, has purchased a 210,300-square-foot industrial distribution center located in Redmond, Washington for $81.5 million, excluding closing costs.
The property is fully leased to FedEx Ground Package System Inc., a subsidiary of FedEx Corporation (NYSE: FDX), a multinational delivery services company. The lease has a remaining term of approximately 8.5 years with two five-year extension options.
The company noted that the LEED Silver-certified distribution facility serves as a last-mile distribution center to the surrounding residential population and local corporations located in Seattle’s Eastside submarket.
The property, which houses a custom, built-in-place conveyor system tasked with sorting and organizing packages for shipment, is within close proximity to Seattle’s major population centers, SeaTac Airport and the Port of Seattle.
“Acquiring a well-located distribution facility in one of the busiest shipment corridors along the West Coast is aligned with our portfolio allocation strategy for the fund,” said Todd Henderson, chairman of RREEF Property Trust and head of real estate, Americas at DWS. “We continue to remain overweight to the industrial sector as we still believe that strong market fundamentals in the U.S. are expected to remain due to low current vacancy rates, a disciplined construction pipeline and the proliferation of e-commerce.”
RREEF Property Trust commenced its $2.5 billion initial public offering in January 2013 and a $2.3 billion follow-on offering in July 2016. In June 2019, the company filed a registration statement for a second follow-on offering of $2.3 billion shares of common stock.