Toronto-based Royal Bank of Canada and RBC Capital Markets arranged the loan, which has a variable interest rate priced at 1.875% above Libor. Proceeds not devoted to the Harrisburg acquisition will help fund Keystone's earlier JV acquisitions.
The Harrisburg property is at 3500 Industrial Rd., which abuts the Norfolk Southern Intermodal Yard and is adjacent to I-81 and Route 22. It is 98% leased to a tenant roster than includes SuperValue, Exel and PJAX. "With this acquisition, Keystone owns more than 10.5 million sf of bulk distribution assets in Pennsylvania," according to A. Donald Chase Jr., SVP.
Merrill Lynch & Co. is the sole underwriter of the public offering, which has an over-allotment option for up to 600,000 additional shares. It can be exercised in whole or in part within 30 days from Nov. 4. Initially, the proceeds of the offering may be used to reduce the outstanding balance on Keystone's unsecured line of credit. Designated for general corporate purposes, however, the proceeds will also fund future acquisitions.
The REIT trades under KTR on the NYSE. Shares opened at $19.50 a share on Nov. 4, down from their 52-week high of $22.65 a share on Oct. 13 this year. The 52-week low of $15.65 per share, occurred on Jan. 22.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
