VEREIT Inc. finalized an 80/20 joint venture with an institutional client of real estate investment adviser Arch Street Capital Advisors LLC that will hold three office assets worth about $137.5 million.
The properties included in the venture are owned by the single-tenant real estate investment trust and span 582,000 square feet across three U.S. states. Two of the assets worth $87.7 million were added to the venture at closing, while the third property will be contributed during the first quarter.
The REIT said the partnership enables it to lower balance-sheet office exposure and use its in-house infrastructure to manage and boost the value of the business.
On the transactions front, VEREIT CEO Glenn Rufrano said the REIT has closed on about $90.0 million of acquisitions thus far in 2020, while portfolio sales have been minimal. The company's industrial partnership and office partnership also expect to wrap up on a roughly $250.0 million property and a $33.0 million asset, respectively, in early 2020, the executive said.
During the fourth quarter of 2019, VEREIT made $166.2 million of acquisitions and $225.5 million of portfolio sales.
It raised $86.7 million in gross proceeds under its at-the-market equity offering program by issuing 9.0 million shares.
VEREIT also noted that its settlements with the SEC pertaining to the class-action and derivative action brought against the REIT received preliminary court approval, with a hearing to review final approval scheduled for Jan. 21. The REIT said the Dec. 31, 2019, deadline to file objections to the class-action or derivative action settlements passed with no objections.
Eastdil Secured LLC represented VEREIT in the joint venture transaction.