TORONTO-Whiterock REIT has closed on the purchase of two offices in Kansas and Tennessee for $77 million, completing an entry into US property ownership. CB Richard Ellis arranged a $50 million financing package for the purchase of US Bank at Deercreek Commons in Overland Park, KS and the Nissan Parts Re-Distribution and Export Center in Mount Juliet, TN.
The properties were part of the five-site Founders Properties National Single Portfolio owned by Opus. The assets were purchased by Whiterock on a wholly-owned basis, with Whiterock assuming property management. The average capitalization rate on the assets is approximately 7.5% and the interest rate on the new long-term fixed rate first mortgage is 5.75%.
The properties are 100% leased, with a weighted average remaining lease term of approximately 15 years. Jason Underwood, CEO of Whiterock, said in a statement that the company has wanted to expand south of the border. “We expect these US properties to deliver consistent and reliable cash flows, low volatility, upside through rent steps and geographic diversification,” he said.
The office was built in 2006 and renovated in 2009 in accordance with plans and specifications developed by US Bank, which committed to invest more than $20 million of its own capital into building improvements. The operations center is on 10 acres and features 846 parking spaces.
Nissan Distribution Centre was built in 2009 and consists of 717,160 square feet, located in the newest industrial submarket in the greater Nashville area, and near the company’s US headquarters in Franklin, TN. The building, on 59 acres, is leased through March 2026 to Nissan North America Inc., a subsidiary of Nissan Motor Co. Ltd.
James Gunning and Donna Falzarano with CBRE’s Debt & Equity Finance division arranged the financing. The loan was placed with Bank of America through Aegon USA Realty Advisors.
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