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Deals & Dealmakers

Broadstone buys $735M industrial and office portfolio

Rochester, NY-based Broadstone Net Lease has acquired a $735 million portfolio of 23 industrial assets across the US and Canada.

The portfolio includes fully leased properties and includes 6.9 million s/f of operational space.

The portfolio has a weighted average remaining lease term of approximately 11.5 years and weighted average annual rent increases of approximately 2.2 percent.


“We are excited to announce this transformational transaction for Broadstone Net Lease and its shareholders,” said Chris Czarnecki, BNL’s Chief Executive Officer.

“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.”

The portfolio is occupied by 19 different tenants in properties located in 14 states and British Columbia, Canada. It comprises a mix of warehouse, distribution, manufacturing, cold storage, and office/flex assets.

On a pro forma basis post-transaction, BNL will own a diversified portfolio of 668 individual net leased commercial properties comprising approximately 27.2 million rentable s/f of operational space with no single tenant accounting for more than 2.8 percent of contractual rental revenue over the next 12 months.

In addition, industrial assets will now comprise approximately 41 percent of the company’s portfolio on an NTM rent basis, with approximately 27 percent and 18 percent of retail and healthcare assets, respectively, making up the majority of the remainder of the REIT.

Broadstone has spent $983 million bulking up its portfolio so far this year and now has a total investment in rental property of more than $4.4 billion.

The latest acquisition was funded through a combination of proceeds from its 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.

In a statement, the company said, “We will begin working to reduce BNL’s leverage profile in the near term using a combination of proceeds from our ongoing private offering of shares of our common stock and increasing disposition activity.”

BNL previously announced that there will be no cap on new and additional investments in shares of its common stock until leverage levels are normalized.

New equity raise efforts resulted in a record $90-plus million for the month of July and was immediately followed by another $39.5 million in August.

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