ROCHESTER, NY—Broadstone Net Lease, a private REIT owned and managed by Broadstone Real Estate has announced second quarter closings of close to $148 million, bringing the year-to-date total for 2015 to $226 million. The REIT acquires free-standing, single-tenant, triple-net leased retail, industrial, and medical facilities, and now owns 273 properties in 32 states.
"With interest rates still low, and very favorable risk-adjusted returns relative to our cost of capital, this is an ideal window for both buyers and sellers of net leased real estate," says Amy Tait, chairman and CEO of Broadstone Real Estate. "With lots of transaction volume in the market, we are well on track to more than double our pace of acquisitions from 2014 to 2015, with a target of over $500 million for the year. Our new relationship with Stone Point Capital will help to maintain and even accelerate our pace of growth."
BNL's largest transaction of the quarter was the sale-leaseback of a five-property, 560,000 square foot portfolio tenanted by the Cott Corp., one of the world's largest private-label beverage producers.
Eleven Taco Bell properties in the Pacific Northwest also were acquired by BNL in exchange for approximately $22 million in BNL Operating Partnership Units through an Umbrella Partnership REIT.
By contributing these properties into the operating partnership of Broadstone Net Lease‚ the prior owners were able to exchange low cost-basis real estate for an interest in a professionally managed portfolio that is diversified by geography, property type, tenant, and lease duration.
Other Q2 acquisitions included the purchase of two properties tenanted by Celerion; a Tampa, FL property tenanted by LabCorp and a Wendy's restaurant in Oklahoma City, which is occupied by a current BNL tenant. BNL now owns 35 Wendy's locations in 10 states.
BNL's new equity issuance remained strong in Q2, as the REIT raised over $125 million in equity from new and existing shareholders. Approximately $37 million of that total was contributed by Broadstone Real Estate in connection with an investment from Trident VI, a private equity fund managed by Stone Point Capital, a Greenwich-CT, based private equity fund manager.
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.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
