Postal Realty CEO: USPS Sellers Eager to Transact
CEO Andrew Spodek says the company has never seen a pipeline and response from the postal community this robust.
CEDARHURST, NY—Postal Realty Trust has closed on the acquisition of 21 of the 22 properties that the REIT announced it was buying last month for $13.8 million. The total acquisition price of the portfolio is $15.5 million. The remaining property is scheduled to close during the third quarter of 2020.
The entire portfolio consists of 91,900 net leasable interior square feet and generates a weighted average rental rate of $15.60 per net leasable interior square foot.
The purchase was funded with the issuance of $8.2 million of OP units valued at $17.00 per unit and the remainder in cash.
In another transaction, last October the REIT closed on the remaining 91 properties of the 113-property US Postal Service portfolio that it acquired for $31.4 million.
As of January 13, 2020, the REIT owns 487 properties in 45 states comprising 1.5 million net leasable interior square feet.
Since its IPO last May, USPS property sellers have been eager to transact with the REIT, according to its CEO Andrew Spodek, who noted during the REIT’s recent earnings call that the company has never seen a pipeline and response from the postal community this robust. USPS property owners “continue to understand the long-term value proposition of our company as evidenced by our ability to utilize OP units as part of the financial consideration of both transactions,” he said.