Broadstone Acquires 23 Industrial Properties for $735.7M as Part of Portfolio Transformation

Broadstone Net Lease acquired 23 industrial properties across 14 states and British Columbia, Canada. A list of the properties was not disclosed. Pictured is 1210 Innovation Drive in Winona, Minn., which BNL owned as of fourth-quarter 2018.

ROCHESTER, N.Y. — Broadstone Net Lease (BNL) has acquired 23 industrial properties in 14 states and British Columbia, Canada for $735.7 million. The portfolio was fully leased at the time of sale and comprises a mix of warehouse, distribution, cold-storage, manufacturing and flex properties.

The 23 buildings total 6.9 million square feet and are leased to 19 tenants. When the sale closes, Rochester-based BNL’s portfolio will consist of 41 percent industrial properties, 27 percent retail and 18 percent healthcare. The company will own 668 net-leased commercial properties totaling approximately 27.2 million rentable square feet of operational space.

The seller and a list of the properties were not disclosed.

“This portfolio benefits from attractive real estate and tenant fundamentals and represents a diverse and accretive addition to our net lease real estate portfolio,” says Chris Czarnecki, BNL’s chief executive officer.

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

The acquisition was funded through a combination of proceeds from BNL’s ongoing private offering of shares of common stock; $150 million from BNL’s $450 million, seven-year, unsecured term loan that matures in February 2026; $300 million from a new term loan; and proceeds from a senior unsecured revolving credit facility.

BNL is a private REIT that acquires and holds freestanding, single-tenant, net-leased properties.

— Alex Tostado

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