Plymouth Industrial REIT Expands Ohio Portfolio with Two Buys
Plymouth Industrial has also signed a definitive agreement to acquire a 1.1-million-square-foot, multi-tenant Class B industrial property in Cincinnati for $24.8 million.
CLEVELAND, OH—Boston-based Plymouth Industrial REIT, Inc. reports it will purchase approximately 1.5 million square feet of industrial space in Ohio for nearly $52 million.
The company has purchased a 400,000-square foot, multi-tenant Class A industrial building in Cleveland for $27.0 million. The all-cash deal was funded with borrowings under the company’s secured credit facility.
Plymouth Industrial has also signed a definitive agreement to acquire a 1.1-million-square-foot, multi-tenant Class B industrial property in Cincinnati for $24.8 million. The Cincinnati transaction is expected to be funded with the issuance of operating partnership units and the assumption of existing mortgage debt. The deal is expected to close later this month.
Pendleton White, president and chief investment officer of Plymouth Industrial REIT, says of the two deals, “Cleveland and Cincinnati are attractive markets for us, and we are excited to increase our presence in each market. In addition to the stabilized income from strong current occupancy, the acquisitions offer opportunities to leverage our leasing expertise on future renewals in tight markets, significantly diversify our tenant base and secure future development potential.”
The 400,000-square-foot 30339 Diamond Parkway in Cleveland is 100% leased to four tenants, including Royal Appliance Manufacturing Company and Ryder Logistics and is located in Cleveland’s high-demand Southeast market. The acquisition is projected to provide an initial yield of 7.6%.
The pending Cincinnati acquisition of Fisher Park is projected to provide an initial yield of 8.5%. Plymouth expects to fund the transaction with the issuance of approximately $10.8 million in operating partnership units priced at $17.00 per unit, and the assumption of approximately $14 million of existing mortgage debt. Located on 103 acres with rail and crane service on site, the property is 92% leased to 12 tenants.
Back in July, Plymouth Industrial REIT closed on a new 10-year $78- million loan from Transamerica Life Insurance Co. with a fixed interest rate of 4.35% and secured by 18 Chicago area properties.
The proceeds of the loan, together with additional working capital, were used to repay in full the company’s $79.8 million variable rate secured term loan from GS Special Situations Group scheduled to mature in December 2019 with a floating interest rate of 310 basis points over LIBOR. The previous loan was used to partially fund Plymouth’s acquisition of a 15-property industrial portfolio in the greater Chicago area from a subsidiary of Goldman Sachs.