Global Net Lease, Inc. (NYSE: GNL), a real estate investment trust focused on the acquisition of net lease industrial properties, today announced that it closed on the acquisition of five industrial assets representing approximately 1.4 million square feet for $83.0 million. The five buildings are leased to Contractors Steel Company and were purchased at a price equating to a weighted-average GAAP capitalization rate of 8.19%1 and a weighted-average remaining lease term of 10.0 years2. This transaction strengthens GNL's already strong Midwest presence and lengthens its weighted-average remaining lease term.
These properties are part of the $293 million of acquisitions announced earlier in 2018 and to date $146.4 million has closed. GNL funded the transactions with borrowings under its revolving credit facility.
Property and Tenant Summary
Founded in 1960 Contractors Steel Company is a steel service supplier with products and services provided to clients throughout the Midwestern U.S. and Canada and has an implied investment grade credit rating on Moody's Analytics of "Baa33."
Three of the buildings are located in Michigan, one in Ohio and one in Indiana, all well- positioned near interstate highways and rail facilities. Additionally, the properties are near numerous major cities in the Midwest, further enhancing the company's supply chain efforts. The industrial buildings included in this transaction comprise all of Contractors Steel Company's facilities and also house the company's offices, central inventory, and processing depot.
Property Summary Table
| Tenant | Closing Date | Buildings | Square Feet | Asset Type | Lease Term (yrs)(1) | Purchase Price (mm) | Location |
| Contractors Steel Company | 5/16/2018 | 5 | 1,392,000 | Industrial | 10.0 | $83.0 | Michigan, Ohio and Indiana |
| (1) | As of May 16, 2018. |
About Global Net Lease, Inc.
Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE focused on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe. Additional information about GNL can be found on its website at www.globalnetlease.com.
