Modiv Inc., an internally managed real estate investment trust that acquires, owns and manages a diversified portfolio of single-tenant, net-lease real estate properties, completed the previously announced acquisition of the Lindsay Precast LLC portfolio of properties in a sale-leaseback transaction for a total purchase price of $56.1 million.
Lindsay is a precast concrete manufacturer and steel fabricator with a 60-year operating history. The portfolio includes eight properties located in Colorado, Ohio, Florida, North Carolina and South Carolina that are used for manufacturing and distribution. The $56.1 million purchase price includes $2.8 million of expansion capital for a property Colorado and reflects a 25-year lease term with 2% annual rent increases. The transaction has an initial cap rate of 6.65% and an attractive weighted average cap rate of 8.52%.
“We are pleased to announce the closing of the Lindsay transaction and showcase yet another example of our management team’s ability to execute accretive real estate transactions. With this transaction, we have now acquired over $133 million of properties in just the first four months of 2022 at a blended weighted average cap rate of greater than 7.9%,” said Aaron Halfacre, chief executive officer. “This transaction is right in line with our strategy of investing in industrial properties that are mission critical to our tenants on attractive terms.”
