One Liberty Properties, Inc. (NYSE: OLP), announced today that it acquired a portfolio of four free standing retail properties located in Ohio for $6.5 million. The four buildings comprise 32,672 square feet and are net leased with a weighted average remaining term of approximately 10 years. The current annualized rents total approximately $440,000. The tenant, Advance Stores Company, Incorporated, a subsidiary of Advance Auto Parts, Inc., maintains an investment grade rating as determined by the primary credit rating agencies. One Liberty funded the acquisition of these properties with cash on hand and an aggregate of $4.3 million of mortgage debt. The debt bears an interest rate of 3.24% and matures in 2026.
In addition, on June 14, 2016, One Liberty sold a property located in Sandy Springs, GA. The property provided a current annualized base rent of $622,000 and was ground leased to a multi-unit apartment complex owner/operator. One Liberty estimates that in the second quarter of 2016, it will recognize an approximate $2.0 million gain on the sale.
Since April 1, 2016, One Liberty has obtained mortgage debt on two properties in aggregate amount of $19.5 million. The debt bears an average interest rate of approximately 3.75% and matures in 2028.
"Our ongoing focus is to source properties that are well located in good markets with strong underlying real estate fundamentals and to dispose of properties when we believe profit potential has been maximized. Indicative of this discipline is the sale of the Sandy Springs, GA property which was held for just two years, and which resulted in a $2 million gain on a $6.5 million investment. We were then able to recycle that capital to further strengthen our portfolio as we added four properties that enhance our asset mix," stated Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty. "Over time, we continue to monitor the portfolio which allows us to dispose of assets opportunistically thereby increasing the cash available for distribution to our stockholders."
About One Liberty Properties:
One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The primary business of the Company is to acquire, own and manage a geographically diversified portfolio consisting primarily of retail, industrial, flex, and health and fitness properties, many of which are subject to long-term leases. Many of the Company's leases are "net leases", under which the tenant is typically responsible for real estate taxes, insurance and ordinary maintenance and repairs.
