Rodin Global Property Trust Acquires Office Building in Columbus, Ohio
August 1, 2018 | James Sprow | Blue Vault
On July 31, 2018, Rodin Global Property Trust, Inc., through its operating partnership, acquired, together with a subsidiary of the Company’s sponsor, Cantor Fitzgerald Investors, LLC, the Alliance Data Systems Office Building located in Columbus, Ohio at a contract purchase price of $46,950,000.00, exclusive of closing costs. The nontraded REIT will own a 67% interest in the property through a special purpose entity and Cantor Fitzgerald Investors, LLC, will own 33%.
The Property is 100% leased to Comenity Servicing LLC, a subsidiary of Alliance Data Systems Corporation, which serves as the guarantor of the lease. The lease is net whereby the tenant is responsible for operating expenses, real estate taxes, insurance, utilities, repairs, maintenance and capital expenditures, in addition to its obligation to pay base rent.
The lease commenced on September 13, 2017, and expires in 2032. The building contains 241,493 rentable square feet with year one rent of $3.1 million with annual rental escalations of 1.07% and one 10-year renewal option.
The REIT intends, but is not obligated, to purchase 100% of the interests of the purchasing entity at a price equal to the portion contributed by Cantor Fitzgerald Investors, LLC. The REIT funded its portion of the purchase price with cash from its ongoing initial public offering. In connection with the purchase of the property, the special purpose entity entered into a loan agreement with Cantor Commercial Real Estate Lending, L.P., with an outstanding principal amount of $26.55 million which bears interest at 4.9425 percent per annum. The loan matures in 2032 and the anticipated repayment date of the loan is in 2028.
Rodin Global Property Trust now owns a portfolio consisting of an office building in Fort Mill, South Carolina, which is leased to Daimler Trucks of North America, and seven single tenant retail properties in four different states occupied by Walgreens.
The nontraded REIT commenced its initial public offering on March 23, 2017, and as of July 16, 2018, had issued 2,319,339 shares of its common stock (consisting of 1,414,729 Class A Shares, 638,346 Class T Shares, and 266,264 Class I Shares) for gross proceeds of approximately $59.7 million.
Sources: SEC, S&P Global, Blue Vault
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