ARCTRUST Acquires Seven-Property Net Lease Portfolio for Planned DST Offering
ARCTRUST Group of Companies acquired a seven-property single-tenant net lease portfolio and plans to offer it to accredited investors through a Delaware statutory trust: ARCTRUST Exchange II DST.
The portfolio comprises two Pinnacle Bank locations, three CVS Pharmacy locations, and two NAPA Auto Parts locations across North Carolina, Alabama, Kentucky, Michigan, Tennessee, and Virginia. The properties total approximately 51,192 net rentable square feet on roughly 7.75 acres of combined land area.
All seven properties are leased on an absolute triple-net basis, with tenants responsible for taxes, insurance, and building maintenance. The portfolio carries a weighted average remaining lease term of approximately 13.6 years, with contractual rent increases and renewal options across all assets.
“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. “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.”
The two Pinnacle Bank properties are located in Lebanon, Tenn., in the Nashville metropolitan statistical area, and Roanoke, Va. Pinnacle Bank is a wholly owned subsidiary of Pinnacle Financial Partners Inc. (Nasdaq: PNFP), a Nashville-based financial holding company.
The three CVS Pharmacy properties are in Black Mountain, N.C., in the Asheville metropolitan statistical area; Gadsden, Ala.; and Paducah, Ky. CVS Pharmacy operates approximately 9,000 locations across the United States and is a subsidiary of CVS Health Corporation (NYSE: CVS).
The two NAPA Auto Parts properties – both in Michigan, in Charlotte and Niles – are leased to Motor Parts & Equipment Corporation, a subsidiary of Genuine Parts Company (NYSE: GPC). Genuine Parts, founded in 1928, operates more than 10,800 locations across 17 countries, including more than 6,000 NAPA-branded auto parts store across North America.
ARCTRUST Private Capital is the capital markets division of the ARCTRUST Group of Companies, a vertically integrated real estate organization that said it has completed more than 500 projects valued at more than $5 billion over four decades. The firm offers investment structures including nontraded real estate investment trusts, Regulation D offerings, DSTs, and preferred equity and debt products.
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