One Liberty Properties, Inc. (NYSE:OLP) , the Great Neck, NY-based real estate investment trust (“REIT”), disclosed the acquisition of a distribution facility in El Paso, TX. The company has shelled out $23.7 million for the purchase, funded with cash on hand and the company's line of credit.
Built on 24 acres, this El Paso facility has an area of 419,821 square feet. The property is net leased by a Fortune 1000 company through 2022. Its location in the growing southwest region makes it a strategic buy for the company.
Further, it offers scope for strengthening cash flow stability, with the company expecting to reap around $454,000 of rental income per quarter (excluding amortization of the related tangible assets) starting Jul 1, 2016.
Notably, amid an e-commerce boom, heightened urbanization and a larger customer base, companies are opting for supply chain consolidation. This is driving greater demand for logistics infrastructure and efficient distribution networks, propelling demand for distribution facilities.
One Liberty Properties is engaged in the acquisition, ownership, and management of commercial real estate properties in the U.S., primarily under long-term net lease. Its portfolio includes retail, industrial, flex, and health and fitness properties.
Investors interested in the REIT industry may consider stocks like DCT Industrial Trust Inc. (NYSE:DCT) , Douglas Emmett Inc. (NYSE:DEI) and PS Business Parks Inc. (NYSE:PSB) . Each of these stocks holds a Zacks Rank #2 (Buy).
PS BUSINESS PKS (PSB): Free Stock Analysis Report
DOUGLAS EMMETT (DEI): Free Stock Analysis Report
DCT INDUSTRIAL (DCT): Free Stock Analysis Report
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