Cole Office& Industrial REIT Inc.'s Cole Corporate Income OperatingPartnership III LP acquired an office building in Milford, Ohio, for roughly$32.8 million, excluding closing costs.

The operating partnership bought the property from AcquiportMilford LLC via its subsidiary. It funded the acquisition using borrowings froma new revolving credit facility and a subordinate promissory note, both ofwhich were secured Sept. 23. It also funded the transaction using proceeds fromthe REIT's initial public offering of common stock.

The 221,215-square-foot facility is fully leased to SiemensCorp. for an initial term expiring April 30, 2026, with a five-year extensionoption.

The operating partnership can borrow as much as $100.0million in revolving loans under the new credit facility, which will be securedinitially by a pool of qualified properties.

At the operating partnership's option, the revolving loanswill bear interest rates equal to either a base rate; or a eurodollar raterepresenting the one-, two-, three- or six-month LIBOR multiplied by thestatutory reserve rate, plus the applicable rate.

Based on the underlying collateral pool for qualifiedproperties, the credit facility had a roughly $22.9 million borrowing base anda $22.0 million outstanding amount under the credit facility as of Sept. 23.

Meanwhile, the subordinate promissory note comprises a $30.0million unsecured revolving line of credit, which the operating partnershipentered into with Cole Corporate Income Advisors III LLC affiliate VEREITOperating Partnership LP. It bears an annual interest rate equal to the sum of theone-month LIBOR, the credit facility margin and 1.75%, with accrued interestpayable monthly in arrears and principal due on the Sept. 22, 2017, maturitydate.

JPMorgan Chase Bank NA was the joint lead arranger, bookrunner, administrative agent, letter of credit issuer and a lender of the newcredit facility, with KeyBank NA serving as joint lead arranger, syndicationagent and a lender.