Transaction Continues Company’s Strategy of Investing in Single-Tenant, Long-Term Net Leased Assets
BOCA RATON, Fla., April 24, 2014 /PRNewswire/ — The Herrick Company, Inc., one of the nation’s largest real estate investment firms, today announced the acquisition of 44 retail/pharmacy properties located throughout the United States. The properties, all of which are occupied under long-term triple net leases with CVS Caremark, were acquired for approximately $190 million.
The transaction reflects The Herrick Company’s continued strategy of investing in single-tenant, long-term net leased assets that are occupied by credit tenants. The CVS leases in the recently acquired portfolio each have 25 years remaining on the term.
“In real estate, there are few investment opportunities as desirable as properties that are leased on a triple net basis by creditworthy tenants such as CVS,” said Norton Herrick, chairman of The Herrick Company . “As we actively seek out additional investment opportunities that fit our requirements, we’re intently focused on acquiring this type of stable, low-management-intensive property in the retail, industrial and office sectors.”
Added Herrick, “As demonstrated by this latest transaction, our firm’s ability to close quickly on investment targets puts us at a distinct advantage in today’s highly competitive marketplace.”
Affiliates of The Herrick Company purchased the CVS portfolio from private equity firm Fortress Investment Group LLC, with debt financing for the acquisition provided by a consortium of capital sources under a private placement arrangement.
About The Herrick Company, Inc. Founded more than 40 years ago, The Herrick Company, Inc. is a leading national real estate investment company that has completed more than $5 billion in transactions throughout its history. The company focuses on high quality, single tenant, net lease office, industrial and retail properties in key markets throughout the U.S., as well as hotels in major cities and prime undeveloped oceanfront and intercoastal land sites in Southeast Florida. Additionally, the company develops a wide range of project types — from homes to hospitals — and originates, structures and executes project financing for investment-grade tenants.
Through its affiliates, The Herrick Company builds and acquires green energy-related projects that utilize domestic, renewable fuel sources, such as biomass, to produce electricity and alternative fuels, as well as building supplies. The company focuses on projects with power purchase agreements of 20 years or more.