WPT Industrial Real Estate Investment Trust has waived conditions and plans to indirectly acquire a 127,800 square foot distribution property located in Hebron, Kentucky within the Cincinnati, Ohio airport submarket.
The REIT has entered into a purchase agreement with a third-party vendor pursuant to which the REIT will indirectly acquire the property for a purchase price of approximately USD5.5 million (exclusive of closing and transaction costs), representing a capitalisation rate of approximately 7.34 per cent.
The purchase price will be satisfied with cash on hand and the REIT's revolving credit facility. Closing of the transaction is estimated to occur before the end of June 2014.
The building is a Class A distribution facility built in 2003 and expanded in 2010. It features ESFR fire suppression, 125-foot truck courts and 19 loading docks with direct access to the Cincinnati International Airport.
The property is 100 per cent leased to OIA Global, a third-party logistics and freight forwarding company under a lease expiring in September 2018.
The lease includes average annual contractual increases in the tenant's rental rate of approximately one per cent through the balance of the lease term.
"This acquisition, which we expect to be immediately accretive to the REIT's AFFO per unit, is another example of how our ability to source and efficiently complete off-market, third-party acquisitions is generating value for our unitholders," says Scott Frederiksen, chief executive officer of the REIT. "This new facility will complement our overall property portfolio and strengthen our presence in the Cincinnati distribution market."