September 4, 2019
Affiliated subsidiaries of CIM Real Estate Finance Trust, Inc. (CMFT) are selling 454 single-tenant properties for roughly $1.25 billion to San Diego-based Realty Income Corporation. The assets involved are 100% leased and encompass approximately 5.1 million gross rentable square feet across 41 states. Notable tenants include Dollar General, Walgreens, Dollar Tree/Family Dollar and United Oil.
CIM Group’s Mark Selman says, “CMFT intends to deploy the net sale proceeds to pursue a more diversified investment strategy across the capital structure, ultimately transitioning to a mortgage REIT, by balancing its existing core of necessity commercial real estate with a portfolio of commercial mortgage loans and other credit investments.”
The majority of the transaction is anticipated to close by the end of the year, and as loan assumptions occur, subsequent closings are expected to be completed by the end of the second quarter of 2020. The purchase price will be paid mainly in cash, subject to Realty Income’s option to seek the assumption of certain existing debt, of which it currently anticipates to assume $131 million.
“Given the size and scope of CMFT’s single-tenant portfolio, we were able to sell a portion of the assets that were attractive to Realty Income while maintaining strong metrics following the transaction,” said Selman. “We will continue to sell shopping centers and certain single-tenant assets as we execute on our repositioning strategy over the next 12 to 24 months.”
Eastdil Secured represented CMFT in the transaction.
*Pictured Realty Income Corporation’s San Diego Headquarters
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