Correctional Properties North Carolina Prison Finance, asubsidiary of the Palm Beach Gardens-based real estate investmenttrust, recently acquired the Pamlico Correctional Facility inBayboro, NC, for about $24.1 million, plus closing costs. Amedium-security prison, the 576-cell Bayboro facility is leased tothe state of North Carolina under a long-term, triple-netlease.

The newly formed subsidiary also used part of the proceeds torefinance the debt on the Mountain View Correctional Facility, amedium-security prison with 576 cells in Spruce Pine, NC. Earlierthis year, the parent company acquired the facility for about $24.9million, plus closing costs. The state also leases this facilityunder long-term, triple-net lease.

Announcement of the bond issue spurred a mini rally for sharesin the publicly traded REIT. Shares closed up $22 cents on Fridayand then up $42 cents on Monday at $14.64 cents on volume of45,900. The closing price exceeded the prior 52-week high of $14.25cents, with shares trading as low as $9 each over the same timeperiod.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.