RREEF Property Trust Acquires Three Properties
July 18, 2018 | Luke Schmidt | Blue Vault
On July 17, 2018, RREEF Property Trust, Inc. (the “Company”) completed the acquisition of three warehouse distribution buildings located in Florida for a gross purchase price of $20.7 million, exclusive of closing costs. The Company previously entered into an agreement of purchase and sale with the seller on June 1, 2018.
The properties consist of three warehouse distribution buildings: one 182,919 square foot industrial property located in Miami Lakes, Florida, and two industrial properties that are 57,000 square feet and 50,000 square feet located in Hialeah, Florida. Each property has an urban, in-fill location within established industrial submarkets in Miami. The Company funded the acquisition with a $19.9 million borrowing from their secured revolving credit facility with Wells Fargo, N.A. With these borrowings, the Company’s properties have a combined loan-to-cost ratio of approximately 54.7%, while the Company has an overall loan-to-value ratio of approximately 46.4%.
With this acquisition, the Company increases its total number of properties from eight to eleven and its total square feet from 856,916 to 1,146,835. The Company has declared annualized distribution rates of 4.77% (Class A), 5.23% (Class I), and 4.75% (Class T) for the period ending March 31, 2018. Since its initial offering date of January 3, 2013 and through June 30, 2018, the Company has raised a total of approximately $143.6 million in its public offering.
Sources: SEC, Blue Vault