Plymouth Industrial REIT, Inc. (NYSE: PLYM) today announced the acquisition of Madison International Realty’s 80% interest in Plymouth MIR JV LLC, the joint venture formed in December 2020 to acquire a portfolio of industrial buildings in metropolitan Memphis, Tennessee. The purchase included $46.6 million in cash and closing costs in addition to the assumption of $56.0 million in secured debt, which includes Plymouth’s previous pro-rata share of a fixed-rate mortgage maturing in 2027 in the amount of $11.2 million. The transaction is expected to provide a forward 12-month yield of 6.6% on the total consideration of $102.6 million.
Jeff Witherell, Chairman and Chief Executive Officer of Plymouth, noted, “We are pleased to close out this portfolio joint venture with Madison under mutually beneficial terms. With our team on the ground in Memphis, we were able to proactively enhance the management of the properties while improving the physical condition and drive leasing.”
The portfolio is comprised of 28 industrial buildings located in Memphis and Olive Branch, Mississippi totaling 2.3 million square feet, bringing Plymouth’s total footprint in Memphis to 4.7 million square feet. Since acquiring the buildings, Plymouth has implemented value-added capital improvements funded by the joint venture, enhanced the tenant roster, increased rents and significantly improved the in-place NOI.