Postal Realty Trust to Acquire 113 Properties
- Oct 08, 2019
Postal Realty Trust will buy up 113 properties that are leased to the USPS after entering into a $31 million agreement. The transaction is expected to close by the end of the year.
A company spokesperson told Commercial Property Executive that the properties are spread throughout 35 states, with the largest concentrations in North Carolina at 11.7 percent of the portfolio and California with 9.4 percent. In total, the 113 properties add up to 270,000 square feet, with an average weighted rent of $9.75 per square foot. On the overall, the portfolio has a weighted average remaining lease term of 2.1 years, according to Postal.
Postal will also be paying for a portion of the portfolio by issuing approximately $14 million of OP units at $17 per share, with sellers taking payment in OP units becoming Postal shareholders. The spokesperson told CPE that the undisclosed sellers are affiliated with one another and are selling the portfolio as a group.
Earlier in October, Postal also entered into at $100 million credit agreement with People’s United Bank to move forward with their growth strategy. The agreement is a $100 million senior revolving credit facility with a four-year term throughout September, according to Postal. In turn, their latest agreement for the 113-property portfolio will be purchased with the company’s line of credit.
Andrew Spodek, Postal’s CEO, said that the REIT grew its portfolio by 50 percent with this purchase and added that the success of this transaction would hopefully sway more owners who lease to USPS to sell their assets to Postal.
Postal currently owns 289 properties leased to USPS in 43 states, according to the company spokesperson, who told CPE that the REIT’s properties perform great as USPS is the only tenant and always pays rent on time and has historically renewed their leases.
Those numbers are set to increase though, as the REIT also has 46 properties that are under definitive agreements and the 113-property portfolio that is set to close by the end of the year. The company spokesperson told CPE that Postal is agnostic on location and would continue to look for properties specifically leased to the USPS.