Postal Realty Trust, Inc., an internally managed real estate investment trust that owns and manages properties leased to the United States Postal Service (“USPS”), has agreed to acquire a 113-property portfolio of USPS properties from several affiliated sellers for approximately $31million.
The portfolio comprises approximately 270,000 square feet and generates a weighted average rent of $9.75 per square foot.
The weighted average remaining lease term of the portfolio is 2.1 years. As part of the consideration for the portfolio, the company expects to issue approximately $14 million of OP units valued at $17.00 per share.
The balance of the purchase price is expected to be funded with proceeds from the Company’s line of credit.
“We are excited that upon the completion of this transaction, we will have grown our property count by approximately 50% since our IPO in May 2019. We are particularly encouraged by this specific transaction as it demonstrates our ability to effectively underwrite and perform due diligence on a large portfolio quickly and efficiently. We are also pleased that we will be able to utilize our OP units as consideration for the benefit of the seller and the Company. We anticipate that the success of this transaction will encourage other USPS owners to consider selling properties to Postal Realty,” said Andrew Spodek, Postal Realty Trust, Inc.’s Chief Executive Officer.
The transaction is expected to close by the end of the year, subject to the satisfaction of customary closing conditions.
