Broadstone Net Lease, Inc., has acquired a portfolio of 23 industrial and office/flex assets for approximately $735.7 million, excluding capitalized acquisition expenses.
The portfolio which is fully leased and includes 6.9 million rentable square feet of operational space, has a weighted average remaining lease term of approximately 11.5 years and weighted average annual rent increases of approximately 2.2%.
“We are excited to announce this transformational transaction for Broadstone Net Lease and its shareholders. This portfolio benefits from attractive real estate and tenant fundamentals and represents a diverse and accretive addition to our net lease real estate portfolio. Although this transaction results in a short-term increase in leverage, consistent with our growth priorities and commitment to maintaining our investment grade credit rating, we remain highly focused on continuing to actively manage our leverage profile and overall liquidity position,” said Chris Czarnecki, BNL’s Chief Executive Officer.
The portfolio is diversified with 19 different tenants, properties located in 14 states and British Columbia, Canada, and comprises a mix of warehouse, distribution, manufacturing, cold storage, and office/flex assets.
”The acquisition of the portfolio was funded through a combination of proceeds from our ongoing private offering of shares of our common stock, drawing the remaining $150 million commitment available under BNL’s $450 million seven-year unsecured term loan that matures in February 2026, $300 million from a new term loan, and the balance funded from proceeds from a senior unsecured revolving credit facility,” said Broadstone Net Lease in a press release.