Broadstone Net Lease (BNL) REIT, managed by Broadstone Real Estate, invested USD52.1 million in June by acquiring a Siemens industrial facility in Illinois and a newly constructed Shutterfly production facility in Minneapolis.
The 170,000 square foot Siemens facility was offered to Broadstone on a proprietary basis after last October's USD36.3 million sale & leaseback of another Siemens facility in Hoffman Estates, IL. The Elgin transaction carries an initial lease length of 10.5 years, with annual rent increases of more than two per cent. Siemens now ranks as one of BNL's top five tenants in annual rental revenue.
With a market capitalisation of more than USD1.6 billion, Shutterfly provides a range of personalised photo-based products and services, allowing consumers to upload, edit, enhance, organise, find, share, create, print, and preserve their photographs. In late 2013, BNL entered into a forward commitment to acquire the 217,622 square foot Minneapolis-area facility, which was constructed by Ryan Companies, a full-service developer with robust, nationwide operations. Shutterfly and BNL have executed a new 10-year lease with annual rent increases of 2 per cent. The lease also carries three five-year renewal options.
Year-to-date, Broadstone Net Lease has acquired 22 properties for nearly USD108 million. Four of these acquisitions took place in the second quarter, as the REIT deployed nearly USD73 million. In total, BNL has increased its holdings to 212 properties in 31 states.
"This is BNL's second Siemens acquisition in the last eight months, and our first with Shutterfly, a company that is bringing hundreds of new jobs to the Shakopee, Minnesota area," says Amy Tait, Broadstone chairman and CEO. "We are delighted to announce these acquisitions with publicly-traded, quality credit tenants. Given our strong inflows of new equity and recently announced expansion of unsecured borrowing capacity, we welcome new acquisition opportunities throughout the US."