405 Park Ave., corporate headquarters of Global Net Lease/ Photo by Betsy Kim
NEW YORK CITY—Global Net Lease Inc., a small-cap real estate investment trust focused on acquiring and managing single-tenant net lease commercial properties, reports it has closed on four acquisitions that have added 1.3 million square feet to its portfolio.
The properties, located in New York, North Carolina, Ohio and Teas, are leased to a furniture manufacturer, NetScout Systems Texas, LLC, Rubbermaid Incorporated and FedEx Freight and were acquired for a total purchase price of $105.4 million.
The four properties were purchased at a weighted average going-in capitalization rate of 7.16%, equating to a weighted-average GAAP capitalization rate of 7.68%, with a weighted-average remaining lease term of 13.8 years. Global Net Lease funded the transactions with borrowings under its revolving credit facility and cash on hand, which includes proceeds from a public offering of GNL's common stock completed in August.
The first of the four properties acquired is a triple net leased 456,094-square-foot corporate headquarters and manufacturing facility located in New York State. The contract purchase price was $19 million. The building is leased for 20 years to a furniture manufacturer, which creates both commercial-grade workplace furniture and high-quality ready-to-assemble furniture for the home.
The second property is a newly constructed, Class A office building net leased to NetScout Systems Texas, LLC. The 145,000-square-foot building, located in Allen, TX was acquired for $54 million. The building is leased for 12 years. Founded more than 30 years ago, NetScout, the guarantor of the Class A office building lease, is a leading provider of application and network performance management products.
The third property is a 668,592-square-foot industrial facility acquired for $21.4 million and is triple net leased to Rubbermaid Inc. The building, located in Akron, OH, was purchased with a remaining lease term of 10 years. The guarantor is Newell Brands, a worldwide provider of consumer and commercial products.
The fourth property is a newly constructed 28,911-square-foot distribution facility, acquired for $11 million and double net leased to FedEx Freight. The building is located in Greenville, NC. The lease term on the property is 15 years.
Through the end of the third quarter, Global Net Lease, which is headquartered in New York City, reports its combined pipeline of closed and scheduled to close 2018 acquisitions increased to $401 million. The company has closed on $266.4 million of acquisitions through the end of the third quarter, with an additional $134 million expected to close by the end of the fourth quarter, the company reports.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
