EQT Exeter REIT Total NAV Up 25.4%; Purchases $81.5 Million Asset, Appoints New Chair
EQT Exeter Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust externally advised by Exeter Property Group LLC, announced its fourth acquisition since inception – a 202,000 square foot industrial facility on approximately 45 acres of land in Tukila, Wash. It purchased the asset for $81.5 million.
Also, the REIT’s net asset value per share for all classes was $10.01 as of Sept. 30, 2024, a nearly 0.4% decrease from the prior month’s $10.05. Its total NAV was approximately $197.5 million, a 25.4% increase from the prior month’s approximate $157.6 million. Its number of outstanding shares were approximately 19.7 million.
The REIT funded the acquisition of the Washington property with proceeds from a State Farm portfolio mortgage loan and from the sale of Class E units of its operating partnership to EQT Exeter Holdings. The seller of the industrial asset was DPIF2 WA 6 Oxbow LLC, an affiliate of Dermody Properties.
Construction was completed on the industrial facility in 2021, and it is 100% leased to Amazon.com Services LLC as a warehouse and distribution facility. The initial term of the Amazon lease expires on April 30, 2036, with five five-year extension options. The Amazon lease also includes 2.5% annual rent escalations during the initial term. The current annualized base rent for the Amazon lease is approximately $10.91 million and the current remaining lease term is approximately 11.5 years. The tenant’s obligations under the lease are guaranteed by its parent, Amazon.com Inc.
According to the company, the property’s strategic location offers proximate access to Seattle’s growing population, with nearly 4 million people located within a one-hour drive and an industrial labor force of over 200,000 within a 45-minute drive. Its location also provides connectivity to customers and suppliers via a diverse network of closely located interstate freeways, the Port of Seattle and Seattle International Airport. Interstate 5 borders the South Seattle submarket and runs from Vancouver, B.C., to Mexico, providing access to major population centers along the West Coast.
“South Seattle is a highly sought-after, low-supply infill market with limited developable industrial land, an aging building stock, and strong appetite for warehouse space,” said Ali Houshmand, global head of non-traded REITs at EQT Exeter. “Rapid population growth and increasing e-commerce demand, as well as dynamic emerging industries make this property an ideal regional distribution location to the core of Seattle and surrounding region.”
The transaction marks the company’s fourth acquisition since inception, bringing total capital deployed over the period to approximately $390 million.
According to previous reporting by Alts Wire, the REIT was declared effective by the U.S. Securities and Exchange Commission in August 2023. It seeks to invest approximately 80% in properties with business tenants, such as industrial or life science properties, and some 20% in real estate assets with consumer users, such as multifamily or self-storage properties.
In other REIT news, its board of directors appointed Henry Steinberg as director and chairman. He replaced Edward Fitzgerald, who resigned on Sept. 2, 2024.
Steinberg assumed the role as the global head of the REIT’s adviser on Sept 3, and oversees EQT’s real estate business, spanning industrial, life science, and residential strategies across the Americas, Europe, and Asia. Prior to this, Steinberg served as president of EQT Exeter North America from 2020 to 2024. As president, Steinberg was responsible for managing EQT Exeter’s industrial real estate leasing and asset management activities and for sourcing lease transactions nationally. From 2009 to 2020, Steinberg served as investment/leasing officer responsible for the Northeast region, with a specific focus on the New York City/Philadelphia metro area. Prior to joining EQT Exeter, he worked for Liberty Property Trust from 2003 to 2008 as a director of leasing and development.
Steinberg earned a bachelor’s degree in economics from the University of Pennsylvania and an MBA with a concentration in finance from New York University’s Stern School of Business.
The company is offering on a continuous basis up to $5 billion in shares of its Class S, T, D, and I common stock, consisting of up to $4 billion in shares in the primary offering and up to $1 billion in shares pursuant to a distribution reinvestment plan. As of Oct. 15, it had sold 73,285.45 Class I shares in its primary offering for gross offering proceeds of $738,600. It had not yet sold any Class T, S, or D shares.
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