Plymouth Industrial REIT has completed the previously announced strategic investment by an affiliate of Madison International Realty Holdings totaling $75.0 million.
The investment was completed on December 14 conterminously with the closing of Plymouth’s previously announced acquisition of a 20-building, 1.1 million-square-foot light industrial and flex portfolio in Jacksonville, Fla., for $97.1 million.
Proceeds from the investment were used to fund the repayment of a $31.2 million term loan with KeyBank that was to mature in August 2021; deploy $34 million to partially fund the Jacksonville acquisition; fund a $5 million stock repurchase program authorized by the REIT’s board; and for working capital and other corporate expenses, including closing costs.
The acquisition was funded with approximately $34 million in proceeds from the Madison investment and a $63 million short-term loan from KeyBank that bears interest at a rate of 100 basis points over LIBOR. Plymouth intends to refinance the loan in 2019 with secured financing.
The portfolio consists of three business parks totaling 20 buildings and 1,133,516 square feet of institutional-quality light industrial and flex assets. The buildings are in close proximity to one another in the highly desirable Southside submarket of Jacksonville, centered by the intersection of Interstate 95 and J. Turner Butler Boulevard. The properties are currently 96 percent leased to 40 tenants. The portfolio has a weighted average lease term of over three years remaining and contains national and regional tenants such as Comcast, Veritiv, Cintas, Staples, Cardinal Health, The Home Depot and Johnson Controls.
