Canadian real estate investment trust Agellan Commercial REIT agreed to buy two industrial properties in Atlanta and Austin, Texas, for about US$61.4 million.
In Atlanta, it signed a deal to buy the 87%-leased Newnan Distribution Center for about US$53 million at a going-in cap rate of about 5.5% and a stabilized cap rate of about 7.25%. Agellan is buying the property with an unnamed private Canadian investor through a 50/50 strategic partnership. The property has warehouse and distribution features totaling about 1.9 million square feet of gross leasable area.
In Austin, Agellan is buying the approximately 56,000-square-foot Corridor Park D light industrial property for about US$8.4 million at a going-in cap rate of 7.59%. A single tenant occupies the four suites that make up the property.
Agellan plans to use cash on hand and/or proceeds from debt financing to fund the transactions, which are expected to close by the third quarter.