Private REIT Has Acquired 43 Properties for $226 million in 2015
ROCHESTER, N.Y. – Broadstone Net Lease (BNL), a private real estate investment trust (REIT) managed by Broadstone Real Estate, continues to grow its national portfolio of triple-net leased properties. The company announced second quarter closings of $147.5 million, bringing the year-to-date total for 2015 to $226 million. The REIT acquires free-standing, single-tenant, triple-net leased retail, industrial, and medical facilities, and now owns 273 properties in 32 states.
“With interest rates still low, and very favorable risk-adjusted returns relative to our cost of capital, this is an ideal window for both buyers and sellers of net leased real estate,” said Amy Tait, Chairman and CEO of Broadstone Real Estate. “With lots of transaction volume in the market, we are well on track to more than double our pace of acquisitions from 2014 to 2015, with a target of over $500 million for the year. Our new relationship with Stone Point Capital will help to maintain and even accelerate our pace of growth.”
BNL’s largest transaction of the quarter was the sale leaseback of a five-property, 560,000 square foot portfolio tenanted by the Cott Corporation, one of the world’s largest private-label beverage producers. Cott’s business lines include robust residential and office distribution of bottled water and coffee.
In another significant transaction, BNL acquired 11 Taco Bell properties in the Pacific Northwest in exchange for approximately $22 million in BNL Operating Partnership Units through an UPREIT transaction, (where “UPREIT” stands for Umbrella Partnership REIT.) UPREIT transactions provide a tax deferred exit strategy for owners of real estate who would otherwise recognize a significant taxable gain in a cash sale of a highly appreciated property with a low tax basis. By contributing these properties into the operating partnership of Broadstone Net Lease‚ the prior owners were able 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.
Other Q2 acquisitions included the purchase of two properties tenanted by Celerion, Inc., one of the largest clinical research organizations in the world; a Tampa, FL property tenanted by LabCorp, an independent clinical laboratory company with worldwide operations; and a Wendy’s restaurant in Oklahoma city, which is occupied by a current BNL tenant. BNL now owns 35 Wendy’s locations in 10 states.
BNL’s new equity issuance remained strong in Q2, as the REIT raised over $125 million in equity from new and existing shareholders. Approximately $37 million of that total was contributed by the ownership and management of BNL’s management company, Broadstone Real Estate (BRE), in connection with an investment from Trident VI, a private equity fund managed by Stone Point Capital, a Greenwich, CT, based private equity fund manager.
About Broadstone Net Lease:
Broadstone Net Lease (BNL) 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 273 medical, industrial and retail properties in 32 states, the REIT targets individual or portfolio acquisitions within the $5 to $100+ million range.
There are currently approximately 1,200 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.