CoStar Group - September 22, 2010
Cole Credit Property Trust III Inc. agreed to purchase 100% of Albertson's interest in 33 retail properties comprising 1,916,854 million square feet throughout the U.S. for $276 million.
The Albertson's portfolio consists of 33 single-tenant commercial properties in Texas, Arizona, New Mexico, Louisiana and Colorado. The properties are 100% occupied by Albertson's, which will also lease back each property.
The leases will be identical for each property and run for 20 years with six 5-year lease renewal options. The initial annual base rent for the properties will be $19.77 million (for an initial yield of approximately 7.2%) for a base rent of $10.31/square foot. The annual base rent under the lease increases every five years by 10% of the then-current annual base rent.
Cole put down a $10 million deposit and has a 30-day due diligence period, during which it may terminate the agreement for any reason.
Cole officials would not comment on the agreement until after and if it went to closing. The acquisition of the properties is expected to be completed by Oct. 19, 2010.
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