Single-Tenant Net Lease Assets Comprise Nearly $1.2 Billion of the Firm’s Acquisitions Activity
Cole Real Estate Investments (Cole), one of the nation’s leading investors in high-quality, income-producing retail, office and industrial real estate assets, announced it has successfully completed approximately $1.5 billion of real estate-related acquisitions this year through August. The announcement was made by Thomas W. Roberts, executive vice president and head of real estate investments at Cole.
Based on its strategy of acquiring real estate assets that are subject to long-term net leases with creditworthy tenants, Cole has acquired approximately $669 million of single-tenant retail properties, $358 million of anchored retail centers, and $525 million of single-tenant office and industrial assets. Overall, these acquisitions included 125 transactions across the United States.
“Market fundamentals have been strong within our core acquisitions segments so far this year,” Roberts said. “We continue to see quality assets come to market with attractive yields that meet our stringent acquisitions criteria. With $1.5 billion of acquisitions closed this year, we are on target to reach our goal of $3 billion of acquisitions as the fourth quarter is traditionally the highest-volume transaction period of the year.”
Noteworthy single-tenant retail acquisitions included a portfolio of 11 PetSmart stores in seven states for $74 million; four grocery stores in Iowa for $27.9 million; and an $18 million sale-leaseback transaction for five casual dining restaurants in four states. “In addition to these portfolio acquisitions, we also continued to acquire core, necessity single-tenant real estate leased to some of the nation’s leading retailers such as Walgreens, CVS, Walmart/Sam’s Club, Best Buy, Kohl’s and Office Depot,” explained Kim Kundrak, chief acquisitions officer for single-tenant retail at Cole.
Cole also continued to be an active acquirer in the multi-tenant anchored shopping sector. Notable acquisitions included Camp Creek Marketplace in East Point, GA, for $76.3 million; Oxford Exchange in Oxford, AL, for $46 million; a $34 million joint venture with Mosaic Properties for South Elgin Crossing in South Elgin, IL; and five shopping centers in Florida for $108.2 million.
Cole grew its portfolio of single-tenant, net-leased office and industrial assets by adding 10 properties. Notable acquisitions included the PetSmart headquarters in Phoenix for $102.5 million; a Wal-Mart freezer/cold storage warehouse facility in Riverside, CA, for $91.5 million; the Banner Life Insurance Company headquarters in Urbana, MD, for $38.2 million; a ConAgra Foods Distribution Facility in Milton, PA, for $28.5 million; the Medtronic office building in San Antonio, TX, for $33 million; and the Hanesbrands Inc., distribution center in Rural Hall, NC, for $31.7 million. The firm also completed the sale-leaseback of Apollo Group’s University of Phoenix office complex in Phoenix, AZ, for $170 million in March.
Cole continues to be one of the nation’s leading acquirers of quality commercial real estate assets. According to Real Capital Analytics, Cole ranks No. 1 for all single-tenant acquisitions and single-tenant retail acquisitions during the past five-year period, as well as No. 3 for all retail acquisitions, No. 1 for single-tenant office acquisitions, No. 3 for all property-type acquisitions (excluding joint ventures) and No. 9 for single-tenant industrial acquisitions for the past 12 months. After acquiring $2.5 billion of high-quality commercial real estate in 2010, the firm is targeting $3 billion of high-quality acquisitions this year.
About Cole Real Estate Investments
Founded in 1979, Cole Real Estate Investments is one of the most active acquirers of core real estate assets, managing one of the country’s largest portfolios of retail properties. Cole primarily targets net-leased single-tenant and multi-tenant retail properties under long-term leases with high credit quality tenants, as well as single-tenant office and industrial properties. Cole executes a conservative investment and financing strategy designed to provide investors with the opportunity for stable current income and capital appreciation. Today, Cole-related entities own and manage more than 1,500 properties representing approximately 55 million square feet of commercial real estate in 46 states with a combined acquisition cost of approximately $9 billion.
Certain statements in this press release may be considered forward-looking statements that reflect the current views of Cole Real Estate Investments and Cole’s management with respect to future events. Forward-looking statements about Cole’s plans, strategies and prospects are based on current information, estimates and projections; they are subject to risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Forward-looking statements are not intended to be a guarantee of any event, action, result, outcome or performance in future periods. Cole does not intend or assume any obligation to update any forward-looking statements, and the reader is cautioned not to place undue reliance on them.
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