ArcTrust Private Capital, the capital markets division of the ArcTrust Group of Companies, announced the acquisition of a seven-property, single-tenant net lease portfolio comprised of two Pinnacle Bank locations, three CVS Pharmacy locations and two Napa Auto Parts locations across six states. The portfolio will be offered to accredited investors as a Delaware statutory trust (DST): ArcTrust Exchange II DST.
The seven-property portfolio consists of approximately 51,192 net rentable square feet across a combined land area of around 7.75 acres in North Carolina, Alabama, Kentucky, Michigan, Tennessee and Virginia. The portfolio features a weighted average remaining lease term of roughly 13.6 years, with contractual rent increases and renewal options across all assets. Each property is leased on an absolute triple-net (NNN) basis, with the tenants responsible for taxes, insurance and maintenance of all buildings and grounds.
“This portfolio reflects ArcTrust’s continued focus on acquiring essential, service-oriented real estate leased to creditworthy tenants under long-term net leases,” said Chris Wadelin, CEO of ArcTrust Private Capital. “Combining national retail pharmacy, automotive aftermarket and established community banking locations across six states gives investors a level of tenant and geographic diversification that we believe may align well with the needs of 1031 exchange investors seeking durable income and capital preservation.”
Pinnacle Bank is a wholly owned subsidiary of Pinnacle Financial Partners, Inc., a Nashville-headquartered financial holding company providing banking, investment, trust, mortgage and insurance products across several southeastern states. The two Pinnacle Bank properties are located in Lebanon, Tennessee (metro Nashville), and Roanoke, Virginia.
The three CVS Pharmacy properties are located in Black Mountain, North Carolina (Asheville MSA); Gadsden, Alabama and Paducah, Kentucky. The two Napa properties are located in Charlotte, Michigan and Niles, Michigan.
