Private REIT Now Owns 344 Properties in 34 States
ROCHESTER, N.Y. – Broadstone Net Lease (BNL), a private real estate investment trust (REIT) managed by Broadstone Real Estate, LLC, continues to grow its national portfolio of triple-net leased properties. Today, BNL announced the acquisition of a property tenanted by Wegmans Food Markets, Inc. via an UPREIT transaction for a gross contribution value of $27 million.
The property, located in Sterling, Virginia, is less than three miles from Washington Dulles International Airport, in close proximity to Washington, DC, and currently leased by Wegmans. BNL is excited about the opportunity to add Wegmans to its impressive list of retail tenants. Headquartered in Rochester, NY, Wegmans is a 100-year old family-owned supermarket chain with locations throughout the mid-Atlantic and New England, and is consistently ranked as one of Fortune Magazine’s “100 Best Companies to Work For”.
UPREIT transactions, (where “UPREIT” stands for Umbrella Partnership REIT), provide a tax deferred exit strategy for owners of real estate who might otherwise recognize a significant taxable gain in a cash sale of a highly appreciated property with a low tax basis. As a result of this transaction, the seller of the property contributed nearly $7.2 million out of the total $27 million contribution amount into the operating partnership of BNL‚ enabling the owner to exchange low cost-basis real estate for an interest in a professionally managed portfolio that is diversified by geography, property type, tenant, and lease duration. Tones Vaisey, PLLC represented BNL in this UPREIT transaction.
“As residents of Rochester, NY, our team has extensive experience with and admiration for the Wegmans brand, management team, and family-oriented culture. We’re thrilled to add this Washington DC-area property to our portfolio,” said Amy Tait, Chairman and CEO of Broadstone Real Estate. “Our acquisitions pipeline for 2016 remains quite strong, with more than $250 million of property under contract or Letter of Intent, and our access to debt and equity capital positions BNL as a buyer of choice in the marketplace. By focusing on real estate fundamentals and the underwriting of credit-worthy tenants, our team has managed to construct a portfolio that is 100% leased. We look forward to announcing additional acquisitions throughout 2016.”
About Broadstone Net Lease:
Broadstone Net Lease invests in freestanding, single-tenant, triple-net leased properties located throughout the United States, primarily via sale and leaseback transactions. With a diversified portfolio of 344 medical, industrial and retail properties in 34 states, the REIT targets individual or portfolio acquisitions within the $10 to $200+ million range.
There are currently more than 1,500 shareholders in BNL, which is externally managed by Broadstone Real Estate, LLC. BNL remains open for new investment by accredited investors on a monthly basis, with a minimum investment of $500,000. Shares are offered via private placement.