CEDARHURST, NY—Postal Realty Trust, a recently-launched REIT that solely focuses on properties leased to the US Postal Service, has struck several deals with various sellers to acquire a 113-asset portfolio for $31 million.
The 270,000-square foot portfolio has a weighted average rent of $9.75 per square foot and a weighted average remaining lease term of 2.1 years. To fund its purchase the REIT will issue stock and use proceeds from its line of credit.
When this transaction closes, the REIT will have grown its property count by 50% since its initial public offering in May, according to CEO Andrew Spodek. “We are particularly encouraged by this specific transaction as it demonstrates our ability to effectively underwrite and perform due diligence on a large portfolio quickly and efficiently,” he said in prepared remarks. He added that he expects that this deal will encourage other USPS owners to consider selling properties to the REIT.
Postal Realty Trust is one of the few REIT IPOs that went to market this year.
The company has entered into agreements for other portfolio acquisitions since its launch, including a 154-asset portfolio for $43.7 million and a 14-property portfolio for $5.4 million.
As of June 30, 2019, the company owns and manages 271 postal properties in 41 states comprising 871,843 square feet.