Broadstone Net Lease (BNL) has acquired a portfolio of 23 industrial and office/flex assets that are fully leased and include 6.9 million rentable square feet of operational space for an aggregate purchase price of approximately $735.7 million, excluding capitalized acquisition expenses.
“We are excited to announce this transformational transaction for Broadstone Net Lease and its shareholders,” said Chris Czarnecki, BNL’s CEO. “This portfolio benefits from attractive real estate and tenant fundamentals and represents a diverse and accretive addition to our net lease real estate portfolio. Although this transaction results in a short-term increase in leverage, consistent with our growth priorities and commitment to maintaining our investment grade credit rating, we remain highly focused on continuing to actively manage our leverage profile and overall liquidity position.”
The portfolio is well diversified with 19 different tenants, properties located in 14 states and British Columbia, Canada, and comprises a mix of warehouse, distribution, manufacturing, cold storage, and office/flex assets. On a pro forma basis post-transaction, BNL will own a diversified portfolio of 668 individual net leased commercial properties comprising approximately 27.2 million rentable square feet of operational space with no single tenant accounting for more than 2.8 percent of contractual rental revenue over the next 12 months. In addition, industrial assets will now comprise approximately 41 percent of its portfolio with approximately 27 percent and 18 percent of retail and healthcare assets, respectively, making up the majority of the remainder of the REIT.
Upon closing of the acquisition, BNL has closed on transactions with an aggregate value of approximately $983 million year-to-date, excluding capitalized acquisition expenses, and have a total investment in rental property of more than $4.4 billion.
BNL will begin working to reduce its leverage profile in the near term using a combination of proceeds from our ongoing private offering of shares of our common stock and increasing disposition activity. BNL previously announced that there will be no cap on new and additional investments in shares of its common stock until leverage levels are normalized, with the intention to reinstitute a cap on monthly equity closings once we are comfortably within the leverage range of BNL’s investment grade rating. The new equity raise efforts resulted in a record $90-plus million for the month of July and was immediately followed by another $39.5 million in August.
