X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORLANDO-Commercial Net Lease Realty Inc. expects to close today on the sale of 5.6 million shares of its common stock to cover a portion of the July 24th $142.8 million purchase contract for two fully leased office buildings totaling 540,707 sf and a two-story parking garage in Washington, DC.

CNLR’s chief financial officer Kevin B. Habicht says the REIT expects to realize net proceeds of $95.6 million from the stock which was priced at $18 per share, its current trading price on the New York Stock Exchange. CNLR has given the underwriters an over-allotment option to buy up to 840,000 additional shares.

Citigroup Global Markets Inc. acted as sole book-running manager for the public offering. Wachovia Securities was the co-lead manager. A.G. Edwards & Sons Inc. and Legg Mason Wood Walker Inc. were the other co-managers.

The acquisition of the office buildings was also expected to be approved today by a US Bankruptcy Court judge. The former owner is MCI WorldCom Network Services, a unit of WorldCom Inc. which is working its way out of Chapter 11, according to court records.

The properties are leased to the US Transportation Security Administration. The acquisition marks retail-oriented CNLR’s entry into the office market. The purchase price is being funded by a combination of equity capital and debt, Habicht says.

Shareholders of record on July 31 will be receiving a quarterly dividend of 32 cents per share on Aug. 15. The dividend represents an annualized rate of $1.28 per share. Habicht says Commercial Net Lease Realty has paid increased annual dividends per share for 13 consecutive years.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.