Agellan Commercial REIT Announces the Closing of US$19.0 Million
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO--(BUSINESS WIRE)--Agellan Commercial REIT (TSX:ACR.UN) (“Agellan” or the “REIT”) announced today the successful closing of its previously announced transaction of an office property (the “Property”) located in Charlotte, North Carolina for a total purchase price of US$19.0 million (the “Purchase Price”), representing a going-in capitalization rate of 8.2%. The Property is known as the Linville Building and is considered the premier building in the North submarket, ideally positioned between Charlotte’s CBD and Lake Norman, an affluent residential area. The five- story commercial office facility was built in 2008, and has a weighted average lease term of 6 years. The acquisition was funded with the REIT’s acquisition facility.
“The Linville building is best in class within its submarket, and we believe it will benefit from improving economic fundamentals in Charlotte.”
Highlights of the acquisition include:
- The REIT is executing its growth plan by acquiring a well-located, high-quality property in a major U.S. market experiencing significant growth.
- The Linville building provides an opportunity to invest in Charlotte, an emerging energy and financial hub entering a recovery cycle.
- The acquisition provides an opportunity for the REIT to capitalize on Charlotte’s economic recovery through lease up of vacant space, and increasing market rental rates.
- The property is 91% leased with over half of the leased space occupied by strong national credit tenants, each with over 8 years term remaining.
- The REIT is acquiring the Property at an attractive capitalization rate of 8.2%.
Frank Camenzuli, Agellan’s Chief Executive Officer, commented, “The Linville building is best in class within its submarket, and we believe it will benefit from improving economic fundamentals in Charlotte.”
About Agellan Commercial Real Estate Investment Trust
Agellan Commercial REIT is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.
The REIT's current portfolio aggregates approximately 4.7 million square feet of gross leasable area in 27 properties. The properties are located in major urban markets in the United States and Canada.