HOUSTON – Weingarten Realty Investors announced the sale of 52 industrial buildings and warehouses as part of its move to sell off its industrial properties and focus only on retail centers.
The Houston-based REIT will sell the properties to DRA Advisors LLC. The portfolio is comprised of 52 industrial properties, aggregating approximately 9.6 million square feet located in Florida, Georgia, Tennessee, Texas and Virginia. The portfolio is predominately unencumbered, with DRA assuming one secured loan of $4.9 million. The sale price is $382.4 million, representing a capitalization rate of approximately 8 percent.
“The sale of this portfolio demonstrates our commitment to the Company’s capital recycling initiative. It is a significant step toward the strategic exit from industrial real estate, further strengthening our position as a pure-play retail REIT,” said Drew Alexander, President and Chief Executive Officer.
Weingarten owns 313 retail centers in the U.S. Of the industrial properties being sold, about 2 million is in Houston.