Guggenheim Commercial Real Estate Finance has provided a $99m loan to Pure Industrial Real Estate Trust (PIRET) for the purchase of an eight-property industrial portfolio in five US states.
The seven-year, fixed-rate loan backs 1.5m sq ft of distribution facility space, fully leased to postal delivery giant FedEx, in California, Florida, Illinois, New Jersey and Texas.
PIRET, a real estate investment trust, purchased 10 total properties (1.9m sq ft) from Scannell Properties for $235m, two of which were all-cash transactions.
The investment marks an entry into the US industrial market for PIRET and the properties “serve as a strong foundation on which to build a US presence, representing up to 20% of our overall portfolio in select US markets,” said Kevan Gorrie, PIRET’s co-CEO and president.
“The properties represent the leading edge in e-commerce services, and this transaction is consistent with PIRET’s strategy of acquiring newer generation distribution and logistics properties in strong and liquid markets,” he added.
The portfolio has 10.1 years of remaining lease terms on average and an average building age is approximately 3.3 years (6.3 years for the six properties that are income producing).
“The properties… provide attractive growth opportunities through expansions and multiple renewal options with rent escalations,” Gorrie said.
The properties included as part of the financing include 200 Old Ranch Road in City of Industry, California; 5731 Premier Mark Drive in West Palm Beach, Florida; 7800 Turkey Hollow Road in Rock Island, Illinois; 1234 Peterson Drive in Wheeling, Illinois; 5 Commerce Drive in Barrington, New Jersey; 1 Commerce Center Drive in Dover, New Jersey; 15904 Impact Way in Pflugerville, TX; and 9929 and 9943 Doerr Lane in Schertz, Texas.
Pure Industrial Real Estate True (PIRET) is an unincorporated, open-ended investment trust that owns and operates a diversified portfolio of income-producing industrial properties in leading markets. PIRET is an internally managed REIT that focuses exclusively on investing in industrial properties.
HFF arranged the financing.