Friday, December 28, 2018

Exeter Property Group Conshohocken Buys 7 STAG Industrial Properties for $114M

by John Jordan
STAG Industrial, Inc. continues its aggressive acquisition and disposition activity in 2018 with the sale of seven industrial properties totaling 1.8 million square feet.

The deal for the portfolio secures the Boston-based firm gross proceeds of approximately $113.5 million. The properties are 100% leased to seven tenants. The portfolio was acquired by Exeter Property Group of Conshohocken, PA.
“This portfolio sale of seven individually acquired industrial buildings demonstrates the value created by the STAG platform. As was evidenced in our previous portfolio sale, we achieved significant cap rate compression through the aggregation of individual industrial assets,” says Ben Butcher, CEO of STAG. “This transaction provides attractive capital for STAG as we head into 2019.”

STAG’s portfolio currently consists of 381 properties in 37 states with approximately 75 million rentable square feet.

In an investor presentation on the company’s website, STAG states that it realized a gain on the portfolio sale of approximately $30 million based on a disposition cap rate of 6.2%.
The average building size in the portfolio was 250,494 square feet and the weighted average lease term was 6.5 years.

In November, STAG announced that for the three months ended Sept. 30, 2018, it had acquired 15 buildings for $194.5 million with an occupancy rate of 100% upon acquisition. For the three quarters, the company reported it had acquired 36 buildings totaling nearly 7.1 million square feet for approximately $458.7 million.

Through three quarters of this year, the company sold 11 buildings totaling nearly 2 million square feet for $92.07 million.

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