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Canadian REIT Making Industrial-Strength Buy in DFW

Agellan to Acquire 7-Building Portfolio in $12.2 Million Deal
April 10, 2018
A Toronto-based real estate investment trust has entered into an agreement to purchase a seven-building industrial portfolio totaling about 194,000 square feet of space in northeast Dallas.

Agellan Commercial Real Estate Investment Trust (TSX: ACR.UN) has a going-in capitalization rate of about 7.7 percent in the $12.2 million deal.

The REIT plans to finance the deal by leveraging its operating credit facility and obtaining a first mortgage through Acquired Properties. The deal is slated to close by the end of the second quarter in 2018 upon meeting specified closing conditions.

This acquisition gives Agellan Commercial an important foothold in a key U.S. industrial market and the ability to expand its Lone Star state portfolio beyond Houston, said CEO Frank Camenzuli.

Dallas-Fort Worth is a logistics hotbed in the United States and an important industrial real estate market. According to CoStar’s recent State of the U.S. Industrial Market, Dallas-Fort Worth sits in a ‘higher long-term growth’ market based on forecasted employment growth through the end of 2022.

That current and future population growth is fueling the distribution and logistics market in North Texas. At the end of 2017, Dallas-Fort Worth showed the strongest net absorption with the region landing more than 20 million square feet of industrial space, according to CoStar data.

The Dallas-Fort Worth portfolio is 97 percent leased to 13 tenants with an average remaining weighted lease of 2.5 years.

The addresses of the properties weren't immediately available from the REIT.

Candace Carlisle, Dallas-Fort Worth Reporter  CoStar Group   
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