ARCTRUST Acquires Seven Property Net Lease Portfolio for Planned DST Offering
Diversified portfolio of Pinnacle Bank, CVS Pharmacy, and NAPA Auto Parts properties expands ARCTRUST's net lease platform for 1031 exchange investors
ARCTRUST Private Capital, the capital markets division of the ARCTRUST Group of Companies, announced today the acquisition of a seven property, single-tenant net lease portfolio comprised of two Pinnacle Bank locations, three CVS Pharmacy locations, and two NAPA Auto Parts locations across six states. The portfolio will be offered to accredited investors as a Delaware statutory trust (DST): ARCTRUST Exchange II DST.
The seven property portfolio consists of approximately 51,192 net rentable square feet across a combined land area of around 7.75 acres in North Carolina, Alabama, Kentucky, Michigan, Tennessee, and Virginia. The portfolio features a weighted average remaining lease term of roughly 13.6 years, with contractual rent increases and renewal options across all assets. Each property is leased on an absolute triple-net (NNN) basis, with the tenants responsible for taxes, insurance, and maintenance of all buildings and grounds.
"This portfolio reflects ARCTRUST's continued focus on acquiring essential, service-oriented real estate leased to creditworthy tenants under long-term net leases," said Chris Wadelin, CEO of ARCTRUST Private Capital. "Combining national retail pharmacy, automotive aftermarket, and established community banking locations across six states gives investors a level of tenant and geographic diversification that we believe may align well with the needs of 1031 exchange investors seeking durable income and capital preservation."
Pinnacle Bank is a wholly owned subsidiary of Pinnacle Financial Partners, Inc. (NASDAQ:PNFP), a Nashville headquartered financial holding company providing banking, investment, trust, mortgage, and insurance products across several southeastern states. The two Pinnacle Bank properties are located in Lebanon, Tennessee, in the Nashville MSA, and Roanoke, Virginia.
CVS Pharmacy is a national retail pharmacy operator with approximately 9,000 locations across the United States and is a subsidiary of CVS Health Corporation (NYSE:CVS), a Fortune 10 diversified health solutions company. The three CVS Pharmacy properties are located in Black Mountain, North Carolina (in the Asheville MSA); Gadsden, Alabama; and Paducah, Kentucky.
NAPA Auto Parts is one of the most recognized brands in the automotive aftermarket, with more than 6,000 NAPA-branded stores across North America. The two NAPA properties are leased to Motor Parts & Equipment Corporation, a subsidiary of Genuine Parts Company (NYSE:GPC), a global distributor of automotive and industrial replacement parts founded in 1928 and operating more than 10,800 locations in 17 countries. The NAPA properties are located in Charlotte, Michigan and Niles, Michigan.
Overall, the portfolio is diversified across three resilient industries including retail pharmacy, automotive aftermarket, and community banking, and six states, with each asset situated in an established suburban corridor with strong local demographics and a long-standing tenant presence.
About ARCTRUST Private Capital
ARCTRUST Private Capital (APC) is the capital markets division of the ARCTRUST Group of Companies (ARCTRUST), a vertically integrated real estate organization with more than 500 projects valued at over $5 billion across four decades. APC offers a diverse platform of real estate investment solutions including REITs, Regulation D offerings, Delaware statutory trusts, preferred equity and debt products, and access to private sidecar and property-specific joint ventures. Guided by a disciplined investment philosophy of buying when it's cheaper to buy and building when it's cheaper to build, ARCTRUST focuses on essential assets with strong intrinsic value across diverse property types to create long-term investor value. To learn more, visit www.arctrustprivatecapital.com.
This communication is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Offers are made solely through the Private Placement Memorandum (PPM), which must be reviewed in its entirety before investing. This offering is made pursuant to Rule 506(c) of Regulation D and is available only to accredited investors as defined by the U.S. Securities and Exchange Commission. Investments in real estate and DSTs involve significant risks, including but not limited to illiquidity, loss of capital, and lack of diversification. The matters discussed in this release may contain forward-looking statements based on current expectations and assumptions. These statements are subject to risks, uncertainties, and other factors that may cause actual results to differ materially. Past performance is not indicative of future results. Securities are offered through Chauner Securities, Inc., member of FINRA/SIPC.
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Rebecca Cleary
Spotlight Marketing Communications
949.427.1462
rebecca@spotlightmarcom.com