Realty Income to buy Diverse Net Lease Portfolio for $544mm

The REIT Realty Income Corp (NYSE:O), is under contract to buy a portfolio of 33 single tenant, NNN leased properties for $544,000.000.00

In keeping with the firms core business discipline, much of the lease income being acquired will come from retailers, however several office, distribution and even manufacturing assets are included in the deal.

The portfolio is diversified across seventeen states and comprises 3.8mm sq/ft of leasable space.

Retail tenants include movie theaters leased to AMC, Cinemark and Regal and pharmacies leased to Walgreens. Tenants leasing office space include T-Mobile, Novus International and Solae. FedEx, International Paper and Caterpillar are among the tenants in the portfolio with leased distribution facilities. Manufacturing plants NNN leased to Coca-Cola and MeadWestvaco are also included in the deal.

There is about $291mm in debt currently encumbering the portfolio. Realty Income will pay off the lion’s share (~$223mm) right after the deal closes the remaining (~$68mm) will be dealt with some time in the future when existing yield maintenance per-payment penalties are more manageable.

The transaction is expected to close late in the first half of this year.

For Information on credit tenant lease (CTL) loans or to apply for CTL or other commercial real estate  financing click here or call Glenn Fydnekevez at 800-727-5140 x 101


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