Plymouth Industrial REIT Expands Cincinnati Presence
BOSTON – Plymouth Industrial REIT, Inc. (NYSE: PLYM), has successfully augmented its footprint in Cincinnati through the acquisition of a small bay industrial portfolio. The total investment for this portfolio amounted to $20.1 million, promising an initial net operating income (NOI) yield of 6.8%. The portfolio includes nine buildings, which encompass a total of 258,082 square feet and boasts impressive occupancy, currently standing at 96.9% leased across 23 tenants. The weighted average lease term for these properties is approximately 2.75 years.
Future Expansion Plans
A second tranche of this acquisition is already under contract, expected to close at $17.9 million. This segment is projected to yield an initial return of 7.3%. It includes four additional buildings in Cincinnati, spreading over 240,578 square feet and is currently 98.0% leased to nine different tenants with a longer weighted average lease term of about 3.75 years. With these plans, Plymouth is making significant strides in solidifying its presence in the market.
CEO's Insights on the Acquisition
Jeff Witherell, the Chairman and CEO of Plymouth Industrial REIT, expressed optimism regarding their ongoing strategic operations. He remarked, "We have an active pipeline of new investment opportunities we are pursuing in 2025. This portfolio is the first of these new transactions, marking a significant addition and bringing our total portfolio in the Cincinnati area to over 3 million square feet. The properties were acquired at prices below replacement cost, with rents that remain competitive and below market trends. Our focus now is on enhancing returns through effective leasing strategies and proactive asset management over the coming two years."
About Plymouth Industrial REIT
Plymouth Industrial REIT, Inc. (NYSE: PLYM) is dedicated to being a leading real estate investment entity. Specializing in the acquisition, ownership, and management of both single and multi-tenant industrial properties, the firm aims to provide tenants with space that is not just functional but also cost-effective and flexible. As more industries evolve, companies like Plymouth are strategically positioning themselves to cater to growing space demands.
Frequently Asked Questions
What is the main purpose of the acquisition by Plymouth Industrial REIT?
The main purpose of the acquisition is to expand Plymouth Industrial REIT's industrial presence in the Cincinnati market and to generate promising returns through strategic leasing and asset management.
How many properties did Plymouth acquire in this transaction?
Plymouth acquired a portfolio consisting of nine buildings in the first tranche and is under contract for a second tranche containing four additional buildings.
What percentage of occupancy do the acquired buildings have?
The acquired buildings have a current occupancy rate of 96.9% across the first tranche and 98.0% for the second tranche.
What is the expected initial NOI yield from this acquisition?
The anticipated initial NOI yield from the first tranche of the acquisition is approximately 6.8%.
Who is the CEO of Plymouth Industrial REIT?
Jeff Witherell serves as the Chairman and CEO of Plymouth Industrial REIT, providing leadership in the firm's strategic initiatives.
