REBusinessOnline

COLE ACQUIRES NET-LEASED OFFICE, INDUSTRIAL PROPERTIES FOR $386.1M

Thomas Roberts

PHOENIX— Cole Corporate Income Trust (CCIT) Inc. has acquired 12 single-tenant office and industrial properties for approximately $386.1 million, including corporate facilities in North Carolina, Tennessee, Virginia, Texas, New Jersey, Nevada, Arizona, California and Colorado. The assets include “mission-critical” facilities leased to corporate tenants.

CCIT, a non-traded real estate investment trust (REIT), invests primarily in single-tenant, income-producing, corporate properties leased to creditworthy tenants under long-term net leases. Cole Corporate Income Advisors LLC, a subsidiary of Cole Real Estate Investments Inc. (NYSE: COLE), serves as external advisor to CCIT.

“The diversified industries, geographic locations, remaining lease terms and strategic importance of the properties for the tenants made these solid acquisition targets,” says Thomas Roberts, executive vice president and head of real estate investments at Phoenix-based Cole Real Estate Investments.

“We continue to identify opportunities that meet our stringent acquisitions criteria and satisfy our rigorous underwriting processes, while building a high-quality portfolio of net-leased office and industrial assets for CCIT,” adds Roberts.

The 12 office and industrial properties CCIT acquired include:

• two Amazon distribution warehouses totaling more than 2 million square feet combined in Murfreesboro, Tenn., and Chester, Va. The build-to-suit properties serve as regional distribution centers for the world's largest online retailer.

• a 199,248-square-foot, three-story office property located in Plano, Texas. The property serves as an “AT&T Foundry” innovation center, an R&D facility where AT&T and its partners collaborate on creating new technology.

• a 633,836-square-foot warehouse facility in Burlington, N.J. CCIT acquired the property through a sale-leaseback transaction. The facility serves as the regional distribution center for BJ's Wholesale Club Warehouse/Distribution Center retail stores in the Mid-Atlantic region.

• a 126,225-square-foot, three-story office building leased to Duke PRMO LLC, part of the Duke University Health System network. The facility, located in the Durham-Chapel Hill metropolitan statistical area (MSA), provides administrative and training support to the health system.

• a 337,500-square-foot industrial warehouse leased to the Trex Co. in Fernley, Nev. The property serves as a raw materials warehouse for Trex, the world's largest manufacturer of wood-alternative decking and railing products.

• an 833,079-square-foot, six-facility portfolio that includes three properties in the Phoenix MSA, two properties in San Jose and one facility in Denver. The properties in metro Phoenix included a DeVry University educational facility, a CVS Caremark back office/call center, and C.R. Bard's customer service, conference and showroom facility. The two properties in San Jose included Acxiom's West Coast headquarters and Bestronics' corporate headquarters and manufacturing facility. The facility in Denver is the Boise Paper Holdings' paper corrugation plant servicing the West.

As of June 30, 2013, Cole Real Estate Investments reported total assets of $7.9 billion, which included 1,014 properties representing approximately 44 million square feet of commercial real estate in 48 states.

The stock price of Cole Real Estate Investments closed at $12.12 per share on Thursday, Sept. 19. The company went public earlier this year with the stock price closing at $10.90 per share on June 20, the company’s first day of trading on the NYSE.

— Matt Valley

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