Dividend Capital Acquires iStar Real Estate Portfolio

Dividend Capital Total Realty Trust Inc., a real estate investment trust, recently declared its completion of the previously announced acquisition of iStar Financial Inc.’s portfolio containing 32 offices and industrial properties. The portfolio consists of properties located in 16 markets within the United States, totaling approximately 11.3 million net rentable square feet. The acquisition includes 21 office properties located in 10 markets—approximately 4.6 million net rentable square feet—and 11 industrial properties located in nine markets—approximately 6.7 million net rentable square feet. Dividend Capital Total Realty Trust secured approximately $859 million of senior and mezzanine financing from the portfolio with a combination of fixed and floating interest rates, the average weighted interest rate of these loans set at approximately 5.4 percent.

The portfolio is 99 percent occupied, and a large majority of the properties are leased to single-tenant corporate users, with a remaining lease term of about 7.6 years as figured through based rent. Upon closing, nearly 50 percent of the net operating income is expected to be generated from tenants with an investment grade public credit rating. Additionally, about 95 percent of the portfolio’s tenants are public companies that offer transparency into tenant operations and financial statements. Select tenants include Amazon.com, Sybase, FedEx, Unisys, Goodyear, Nokia Siemens, Avis Budget, DirectTV, and Google.
As of June 25, Denver-based Dividend Capital Total Realty Trust owns 111 properties totaling approximately 24.3 million square feet in 35 geographic markets.