Item 1.01.
Entry into a Material Definitive Agreement.
Purchase and Sale Agreement for
Dallas Infill Industrial Portfolio
On May 15, 2019, BCI IV Acquisitions LLC, a wholly-owned subsidiary of Black Creek Industrial REIT IV Inc. (the “Company”), entered into a Purchase and Sale Agreement (the “Agreement”) with Pioneer Industrial, LLC, Pioneer Parking Lot, LLC and Cava Northgate Industrial LLC (collectively, the "Seller") to acquire a 100% fee interest in five industrial buildings totaling approximately
1.4 million
square feet on approximately 71.1 acres (the “
Dallas Infill Industrial Portfolio
”). The
Dallas Infill Industrial Portfolio
is located in the Dallas market and is 98.3% occupied by 15 customers with a weighted-average remaining lease term (based on square feet) of approximately
3.7
years. Upon consummation of the acquisition, the customer lease agreements are expected to be assigned to and assumed by the Company through wholly-owned subsidiaries. In general, the customers will be responsible for paying directly or reimbursing the landlord for their pro rata share of the real estate taxes, insurance, and repair and maintenance costs of the property.
The total purchase price is expected to be
$115.0 million
, exclusive of transfer taxes, due diligence expenses, and other closing costs. The Seller is not affiliated with the Company or its affiliates. In connection with the execution of the Agreement, the Company deposited
$2.0 million
into an escrow account upon execution of the Agreement. The Company plans to fund this acquisition using proceeds from the Company’s public offering and the assumption of two fixed-rate mortgages.
The acquisition of the
Dallas Infill Industrial Portfolio
is expected to close during the third quarter of 2019. There is no assurance that the Company will be able to purchase the
Dallas Infill Industrial Portfolio
on the terms set forth herein or at all. The consummation of the acquisition is subject to the Company’s completion of due diligence and various closing conditions to be met by the parties. If the Company does not close on the acquisition, there are circumstances under which it may forfeit the deposit it has funded.
Forward-Looking Statement
This Current Report on Form 8-K contains forward-looking statements (such as those concerning the potential acquisition of the
Dallas Infill Industrial Portfolio
) that are based on the Company’s current expectations, plans, estimates, assumptions, and beliefs that involve numerous risks and uncertainties, including, without limitation, risks associated with the Company’s ability to satisfy conditions precedent to the Company's assumption of two fixed-rate mortgages and complete the acquisition of the
Dallas Infill Industrial Portfolio
, and those risks set forth in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Although these forward-looking statements reflect management’s belief as to future events, actual events or the Company’s investments and results of operations could differ materially from those expressed or implied in these forward-looking statements. To the extent that the Company’s assumptions differ from actual results, the Company’s ability to meet such forward-looking statements may be significantly hindered. You are cautioned not to place undue reliance on any forward-looking statements. The Company cannot assure you that it will attain its investment objectives.