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RREEF Property Trust Expands New Jersey Logistics Asset in Exchange for 15-Year Lease

RREEF Property Trust Expands New Jersey Logistics Asset in Exchange for 15-Year Lease. Alternative investments, investment, NAV, net asset value, real estate, real estate investment trust, expansion, Performance FoodGroup
RREEF Property Trust Expands New Jersey Logistics Asset in Exchange for 15-Year Lease. Alternative investments, investment, NAV, net asset value, real estate, real estate investment trust, expansion, Performance FoodGroup

RREEF Property Trust Inc., a publicly registered daily net asset value real estate investment trust advised by DWS Group, announced that they agreed to expand the premises of its 1109 Commerce Corner investment to accommodate the growth initiatives of an existing tenant, Performance FoodGroup.

Commerce Corner is a 100% leased multi-tenant warehouse and distribution center, which was acquired by the company in 2014.

RREEF says the expansion to Commerce Corner contemplates spending roughly $29 million to add approximately 141,000 square feet to the existing 259,910 square-foot premises. This expansion is anticipated to commence in the fourth quarter of 2023, with substantial completion to be achieved approximately 12 months later.

In addition, Performance Food Group has agreed that, upon substantial completion, it will take possession of the expansion space for 15 years, and in combination with extending their lease for their existing space for the same duration, will bring their leased footprint at the property to approximately 301,000 square feet.

Commerce Corner is in the Gloucester County submarket, which is part of the broader Philadelphia metro industrial market. The facility is 25 miles from the Philadelphia central business district and Philadelphia’s airport, with access to major highways supporting truck commerce.

“Active asset and portfolio management is fundamental to our investment philosophy. The pre-leased expansion of Commerce Corner to increase RREEF Property Trust’s industrial allocation while transacting strategically to reduce office exposure is emblematic of that time-tested approach,” said Todd Henderson, chairman of the board of RREEF Property Trust and head of real estate, Americas at DWS. “It also underscores our ability to execute across the real estate risk spectrum as we endeavor to deliver strong risk­ adjusted total returns across cycles to our investors.”

As of June 30, 2023, RREEF Property Trust’s real estate portfolio included 14 properties valued at $599.7 million, while its real estate securities portfolio was valued at $26.9 million and a CMBS real estate loan investment held a net fair value of $31.2 million. The company has raised approximately $383 million via a series of public and private offerings since January 2013. On Aug. 10, 2023, the company commenced its fourth public offering of up to $2 billion of common stock.

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