ARCTRUST Acquires Net-Lease Portfolio for Planned DST Offering
ARCTRUST Private Capital, the capital markets division of the ARCTRUST Group of Companies, has acquired six single-tenant net-lease properties comprised of three CVS Pharmacy locations and three Pinnacle Bank locations across North Carolina, Alabama, and West Virginia. The portfolio is expected to be structured as a Delaware statutory trust offering for accredited investors.
The six-property portfolio totals approximately 53,000 net rentable square feet across 9.5 acres. The portfolio carries a weighted average lease term of 11.8 years, with contractual rent increases and renewal options. Each property is leased on an absolute triple-net basis, with tenants responsible for taxes, insurance, and maintenance.
“We believe 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, chief executive officer of ARCTRUST Private Capital. “The combination of national retail pharmacy and established community banking locations across multiple states offers diversification, durable tenancy, and predictable income characteristics that may align well with the needs of 1031 exchange investors.”
The three Pinnacle Bank properties are located in High Point (two locations) and Thomasville, N.C. Pinnacle Bank is a regional banking institution serving markets in the Southeast.
The three CVS Pharmacy locations are in Charleston, W.Va., and in Millbrook and Hoover, Ala.
ARCTRUST expects to offer the portfolio as a DST, providing investors access to net-lease assets through a tax-efficient structure commonly utilized in 1031 exchanges.
ARCTRUST Private Capital is an affiliate of the ARCTRUST Group of Companies, a vertically integrated real estate organization that over the past 40 years has been responsible for more than 500 transactions with an aggregate value in excess of $5 billion. The firm sponsors a range of alternative investment offerings, including real estate investment trusts, Regulation D private placements and DSTs.
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