Private equity firm DRA Advisors has acquired a 184-property portfolio from Cabot Properties for $1.07 billion. The acquisition, which sources say came in at a 6.5% cap rate, expands DRA's industrial holdings by 19.8 million square feet.
Funds managed by DRA Advisors will acquire Inland Real Estate Corp. DRA Advisors is paying $10.60 a share in cash for the REIT, a 6.6% premium over its Monday closing share price, for a total of $1.07 billion. Including debt, the deal is valued at $2.3 billion.
Empire State Realty Trust raised $929.5 million in its initial public offering Tuesday. The 71.5 million shares priced at $13, which was at the low end of the expected range of $13 to $15 per share. The deal value could increase to $1.07 billion if underwriters exercise their right to buy additional shares. In that scenario, Empire State REIT would become the largest U.S. REIT IPO since October 2006.
A $1.07 billion budget for fiscal 2013 approved by the Dallas Area Rapid Transit's board of directors will help fund the expansion of the Orange and Blue lines. It will also go toward work on constructing a connector to Dallas/Fort Worth International Airport.