DCT Industrial Trust Inc. sold 10 buildings spanning an aggregate 2.3 million square feet for gross proceeds of $129.3 million, after the third quarter of 2017.
These transactions have an expected year-one weighted-average cash yield of 6.3% and mark the company's exit from the Memphis, Tenn., and Charlotte, N.C., markets.
The industrial real estate investment trust also purchased a 787,000-square-foot class A building in the I-55 submarket of Chicago for $47.3 million. DCT projects a year-one cash yield of -2.3% and a stabilized cash yield of 5.9% on the buy.
The company also broke ground on the 62,000-square-foot Seneca Commerce Center Building IV in the Southwest Broward County submarket of Miami. In addition, DCT acquired two sites, the 926,000-square-foot DCT RiverWest Distribution Center Phase II and the 1.0 million-square-foot DCT RiverWest Distribution Center Phase III, in the I-20 West submarket of Atlanta. It has started construction work on the Phase II site, with shell construction expected to complete in the fourth quarter.
Also, DCT amended its senior unsecured term loan to decrease the interest to a variable rate equal to London Interbank Offered Rate plus a margin, depending on its public debt credit rating, of between 0.90% to 1.75% per annum, or an alternate base rate plus a margin of between 0.45% to 1.40% per annum, at the company's discretion. The interest rate is effectively fixed at 2.81% through maturity, as of Jan. 1.
The company also netted proceeds of $36.1 million from the sale of common stock through an equity offering in the fourth quarter of 2017. The proceeds were used to finance growth and redevelopment and for general business activities.
