is capital recycling.
HOUSTON-DRA is now proud owner of some 52 industrial assets throughout the Southeast, specifically in Florida, Georgia, Tennessee and Virginia, the result of a sale by locally based Weingarten Realty Investors. The 9.6 million square feet in the portfolio, which also includes Texas holdings, encompassed the seller’s wholly owned inventory.
The sale price was $382.4 million, representing an 8% cap rate. J.P. Morgan Securities LLC advised Weingarten on the sale. According to a statement, DRA is assuming one secured loan on the sale, which is expected to close within 60 days.
“The sale demonstrates our commitment to the company’s capital recycling initiative,” says president and CEO Drew Alexander. “It is a significant step toward the strategic exit from industrial real estate, further strengthening our position as a pure-play retail REIT.”
Proceeds are targeted to pay down its credit facility and repay a $200 million unsecured term loan.