EQT Exeter Real Estate Income Trust ended July with a little more than $61 million in real estate investments. It has boosted that number four times with two acquisitions this month.
Radnor, Pennsylvania-based EQT Exeter REIT completed two strategic acquisitions, one in Pennsylvania for over $170 million and the other in Tennessee for $75 million. Both industrial properties were constructed last year and are fully leased by commercial tenants with each property carrying a 10-plus-year lease.
Launched this year, the private REIT is capitalizing on its fresh start and lack of legacy issues, the firm said.
“EQRT is investing in America’s supply chain and will continue to focus on acquiring industrial real estate that supports the growth ambitions of our commercial tenants, which include major distributors and manufacturers,” Ali Houshmand, portfolio manager for the REIT, said in a statement. “We remain committed to our tenant-centric, vertically integrated strategy.”
The 1.2 million-square-foot central Pennsylvania property at 3327 E. Harrisburg Pike in Middletown is positioned near the regional hubs of two major American shipping carriers and within a 5-mile radius of Harrisburg International Airport and the Norfolk Southern Rutherford rail yard.
The property is 100% leased to Amazon.com Services, according to an EQT Exeter filing with the Securities and Exchange Commission. The Amazon lease has a 10-year term expiring in October 2034, with three five-year extension options. The current annualized base rent is about $11.3 million. The lease includes 3.5% annual rent escalations during the initial term.
The 638,400-square-foot Tennessee property at 1500 Shoals Way in Portland is located near multiple highways within the Nashville market, one of the fastest-growing areas in the United States.
The property is 100% leased to Shoals Technologies Group, a company that provides electrical system solutions and components for solar, battery energy and electric vehicle charging applications, according to the SEC filing. The Shoals lease has an 11.7-year term expiring in October 2035, with three five-year extension options. The current annualized base rent is about $5.76 million. The Shoals lease includes 3% annual rent escalations during the initial term.
EQT Exeter REIT acquired the Pennsylvania and Tennessee properties with proceeds from the sale of $91.2 million of units of its operating partnership to EQT Exeter Holdings US, an affiliate of EQT Exeter REIT’s sponsor, in addition to proceeds from debt financings.
New York Life provided an $85.25 million loan for the Middletown property, according to the SEC filing. For the Nashville-area property, State Farm provided a loan for borrowings of up to $109.6 million.