Broadstone Net Lease Acquires $736M Industrial Portfolio

NEW YORK–Broadstone Net Lease, Inc. has acquired a portfolio of 23 industrial and office/flex assets in a $735.7 million transaction.

The portfolio’s assets are full-leased, encompassing 6.9 million rentable square feet of operational space. They consist of a mix of warehouses, distribution, manufacturing, cold storage and office/flex assets, housing 19 different tenants, throughout 14 states and British Columbia, Canada. The portfolio has a weighted average remaining lease term of 11.5 years, with weighted average annual rent increases of 2.2%.

Broadstone Net Lease will own a diversified portfolio of 668 individual net leased commercial properties on a pro forma basis post-transaction, comprised of 27.2 million rentable square feet of operational space, with no single tenant accounting for more than 2.8% of contractual rental revenue over the next 12 months.

Additionally, industrial properties will now make up 41% of the company’s portfolio, on a next twelve month rent basis. The remainder of the REIT’s assets will include 27% retail properties and 18% healthcare properties.

Including this transaction, Broadstone Net Lease has closed a total of $983 million in deals year-to-date. The REIT also has more than $4.4 billion in total rental property investments.

The acquisition was funded through a combination of Broadstone Net Lease’s common stock private offering shares, $150 million from the REIT’s seven-year unsecured term loan, $300 million from a new term loan and the remaining amount from senior unsecured revolving credit facility proceeds.

Broadstone Net Lease previously announced that there will be no cap on new or additional investments in shares of its common stock, until leverage levels are normalized, though the REIT intends to reinstitute a cap on its monthly equity closings.

Broadstone Net Lease will begin to reduce its leverage profile using a combination of proceeds from its ongoing private offering of shares.

The REIT’s new equity increase efforts resulted in a record $90 million in investments for July, followed by $39.5 million in August.

Broadstone Net Lease, Inc., which is managed by Broadstone Real Estate LLC, invests in freestanding, single-tenant, net leased commercial properties throughout the US, via sale and leaseback, lease assumption, and UPREIT transactions. Broadstone Net Lease currently has more than 3,350 stockholders, offering a minimum direct investment of $500,000.