GlobeSt.com UPDATE: Dividend Capital Pays Nearly $18M for Distribution Centers

DCT's undisclosed advisor earned a $170,000 acquisition fee in the deal or about 1% of the purchase price, according to an 8-K report filed by Dividend Capital with the Securities and Exchange Commission. The fee was included in the purchase price and was paid by DCT from the company's recent public offering. The acquired assets are 100% leased. Lincoln Advisory Group Ltd. represented the seller, Lincoln Properties, and was not DCT's advisor, as previously reported.

"The Lincoln portfolio illustrates DCT's strategy of acquiring infill assets with excellent proximity to key transportation corridors," Mike Ruen, DCT vice president of acquisitions, says in a prepared statement. "These facilities are less than five miles from the I-85 and I-285 interchanges, giving customers easy access to the Atlanta metro area and the Southeast."

Norcom Inc., a manufacturer of paper products for retailers in North and South America, including Wal-Mart Stores Inc., and Residential Construction Specialties Inc., a home products company owned by Griffon Corp., are the major tenants in the two buildings.

Dividend Capital CEO Evan H. Zucker, who filed the SEC document, says "the purchase price of the acquisitions was determined through negotiations between the sellers and our advisor." He says the total cost of the acquisitions "may increase by additional costs which have not yet been finally determined" but "we expect any additional costs to be immaterial."

The $17.5-million purchase price equates to $38.17 per sf, considered by area brokers to be below replacement cost of comparable structures. "That means DCT got a good deal here," an Atlanta industrial broker not associated with the transaction tells GlobeSt.com.