ARCTRUST Launches DST Offering of Ohio Industrial Facility
September 26, 2023 | ARCTRUST
ARCTRUST Inc, a 38-year-old, fully integrated real estate company specializing in the development, acquisition and funding of reliable properties, announced today the launch of ARCTRUST Industrial Delaware statutory trust (“DST”), a Regulation D private placement offering that seeks to raise up to $7.1 million in equity and provides 49.5% leverage, targeting a 5.07% year-one distribution for accredited investors with a minimum investment of $50,000.
The offering consists of a 144,328-square-foot, single-story industrial building in Cleveland, Ohio. The building was purchased by the DST on August 16, 2023, for approximately $11.6 million. In total, over $12.1 million of capital improvements were invested into the property in 2023, which is sizable in absolute terms and relative to the purchase price of $11.6 million (or 104% recent capital improvement/purchase price).
“We are very excited to make the ARCTRUST Industrial DST available to investors,” said Chris Wadelin, ARCTRUST Private Capital CEO. “As we continue to expand our DST platform with this mission-critical industrial asset, it further confirms our commitment to the DST industry and our conviction that properties like these offer unique potential advantages for our shareholders, such as diversification potential, possible tax benefits and exposure to industry leading tenants. We believe the DST offers an exceptional opportunity to utilize these advantages to the benefit of everyone involved.”
Located on approximately 11.08 acres at 7000 Denison Avenue, the building is 100% leased to Polychem, LLC, also known as Greenbridge, a company known for serving a wide variety of industries which includes brands such as Itatools, Caristrap and Polychem Systems. Originally constructed in 1967 and recently renovated in 2022, the property contains 160 standard parking places and six ADA-compliant parking spaces in addition to the building.
As the “Maker of Reliable Properties,” ARCTRUST goes beyond simply aggregating properties, but instead creates value by focusing on preferred equity investments, participating debt and mezzanine funding and net lease real estate. Property types include retail, residential, industrial, medical and self-storage. ARCTRUST operates throughout the United States with a focus on the New York to Florida corridor, as well as major metropolitan areas with international airports.
About ARCTRUST
The ARCTRUST Group, based in Clifton, New Jersey, is a vertically integrated real estate organization that over the past 38 years has been responsible for more than 500 transactions with an aggregate value in excess of $5 billion. To learn more, visit http://arctrust.com.
