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DENVER-Dividend Capital Realty Trust and DCT Industrial Trust have closed on their first acquisition for a new 90-10 JV that will acquire $200 million of industrial properties, the company stated in a recent SEC filing. The inaugural purchase is a five-building industrial portfolio in Louisville, KY.

The Riverport Industrial Portfolio it acquired consists of five industrial properties located in Louisville that total 890,000 sf and are 90% leased to nine tenants with remaining lease terms ranging from one to seven years. Dividend Capital said it expects to acquire the portfolio this month using net proceeds from its private and public offerings and an equity contribution from DCT. The company is spending $30.9 million. The seller’s identity was not revealed.

As part of the agreement Dividend Capital granted DCT exclusivity rights until Dec. 31, 2008 that will generally restrict Dividend Capital from pursuing similar agreements with other industrial operating partners within the US and directly acquiring or developing industrial assets within the US.

In the filing, Dividend Capital also reported having lined up a an $18-million retail portfolio acquisition. The sale-leaseback deal consists of five properties totaling 39,000 sf that are 100% leased to single, national tenants with lease terms ranging from 12 to 20 years. The seller is an affiliate of Sovereign Investment Co. that, on behalf of joint venture arrangements between subsidiaries of Dividend Capital and an affiliate of Sovereign, entered into a sale-leaseback arrangement with a nationally recognized restaurant and hospitality group.

Dividend Capital said it expects to re-trade two of the properties shortly after acquisition, according to the SEC filing. It intends to hold the remaining properties for long-term investment. The debt financing expected to be used to acquire the portfolio is a floating-rate, interest-only loan with an outstanding principal balance of approximately $11.9 million that bears interest based on a spread of 3.5% over the one-month US LIBOR rate. The recourse loan has an expected term of two years.

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