Private REIT Raised $290+ Million in Equity, Acquired 88 Properties for $518+ Million
ROCHESTER, N.Y.- Broadstone Net Lease, Inc. (BNL), a private real estate investment trust (REIT) managed by Broadstone Real Estate, LLC (Broadstone), continues to grow its nationwide portfolio of freestanding, single-tenant, triple-net leased commercial properties. Today, BNL announced fourth quarter acquisitions of $137.8 million, as the REIT acquired 17 properties in eight transactions. In aggregate for 2016, BNL acquired 88 properties via 22 distinct transactions for $518.8 million, collected 100% of potential rental income, and completed strategic dispositions of nine properties totaling $39.5 million. At year-end, BNL owned 418 properties (now 419) in 37 states, with a total market value of approximately $2.1 billion. Also of note, in March of 2016, BNL’s operating company, Broadstone Net Lease, LLC, obtained an investment grade credit rating of Baa3 with a stable outlook from Moody’s Investors Service.
Recent acquisitions of note include the December acquisition and lease assumption of a nearly 240,000 square foot, Class-A, industrial warehouse property located in Pennsylvania, tenanted by Leedsworld, Inc. (Leed’s), a premier supplier of branded promotional goods. Other December acquisitions included a three-story, 62,500 square foot, custom-built office building on the Florida Institute of Technology campus, and a 220,000 square foot office building in Austin, Texas tenanted by Centene Corporation (NYSE: CNC), a Fortune 500 company that provides programs and services to government-sponsored health care programs.
BNL raised $290.8 million in equity capital in 2016 ($74.9 million during the fourth quarter), including one UPREIT transaction completed during the first quarter. The REIT posted an 11.22% total return for investors in 2016, and is currently yielding a 6.4% annualized dividend for new shareholders1.
“BNL enjoyed very positive operating results in 2016, and continued to build a strong portfolio of diversified commercial assets, capped off by the notable achievement of obtaining an investment grade credit rating from Moody’s,” said Amy Tait, Chairman and CEO. “We anticipate that 2017 will be another significant milestone year for BNL, as we have crossed the 2,000 shareholder threshold, and plan to transition the REIT to a publicly reporting fund, while remaining a Reg D, private offering for high and ultra-high net worth individual and institutional investors.”
About Broadstone Net Lease:
Broadstone Net Lease, Inc. (BNL) invests in freestanding, single-tenant, triple-net leased commercial properties located throughout the United States, primarily via sale & leaseback, lease assumption, and UPREIT transactions. 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. With a diversified portfolio of 419 medical, industrial and retail properties in 37 states, the REIT targets individual or portfolio acquisitions within the $10 to $200+ million range.
There are currently more than 2,000 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 direct investment of $500,000. Shares are offered directly by BNL via private placement. Please see certain important disclosures regarding BNL at broadstone.com/disclosures.
Accredited investors are invited to download an investor kit: broadstone.com/J17