Industrial Property Trust Inc., a Denver-based corporation that invests in income-producing real estate assets consisting primarily of distribution warehouses and other industrial properties, has agreed to acquire the Century Distribution Center in Houston, TX for $11.5 million.
The recently completed industrial building totals 149,500 square feet and is fully leased to one tenant with a remaining lease term of 10.1 years. The purchase price of $11.5 million is exclusive of transfer taxes, due diligence expenses, and other closing costs.
The acquisition of the Century Distribution Center is expected to close during the first quarter of 2014, but the consummation of the acquisition is subject to due diligence and various closing conditions to be met by the parties.
In connection with the execution of the purchase agreement, the Company deposited $750,000 into an escrow account. If the Company does not close on the acquisition, there are circumstances under which it may forfeit the deposit it has funded.
The Company says it expects to pay an acquisition fee to its advisor equal to 2.0 percent of the purchase price, and will fund the acquisition using proceeds from its offering and debt financing.