Item 1.01.
Entry into a Material Definitive Agreement.
Purchase and Sale Agreement for Gothard Industrial Center
On February 23, 2018, BCI IV Acquisitions LLC, a wholly-owned subsidiary of Black Creek Industrial REIT IV Inc. (the “Company”), entered into an Agreement Regarding Assignment and Assumption of Purchase Agreement (the “Agreement”) with Lanic Engineering, Inc. (the “Assignor”) to acquire a 100% fee interest in one industrial building totaling approximately 59,000 square feet on approximately 2.4 acres (the “Gothard Industrial Center”), subject to the Assignor’s execution of a purchase option agreement with the current owner of Gothard Industrial Center. The Assignor is the tenant of the current owner of the Gothard Industrial Center. Pursuant to the Assignor’s lease, the Assignor holds an option to purchase the Gothard Industrial Center.
The Gothard Industrial Center is located in the Southern California market and is 100% occupied by one customer, the Assignor, with a weighted-average remaining lease term (based on square feet) of approximately 10.0 years. Upon consummation of the acquisition, a new lease agreement with a ten-year term shall be made by the Assignor and the Company, through a wholly-owned subsidiary. In general, the customer will be responsible for paying directly or reimbursing the landlord for the customer's 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 $10,075,000, exclusive of transfer taxes, due diligence expenses, and other closing costs. The Assignor is not affiliated with the Company or its affiliates. In connection with the execution of the Agreement, the Company deposited $400,000 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 borrowings from the Company's corporate line of credit.
The acquisition of the Gothard Industrial Center is expected to close during the second quarter of 2018. There is no assurance that the Company will be able to purchase the Gothard Industrial Center on the terms set forth herein. 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 Gothard Industrial Center) 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 borrowing funds under its corporate line of credit and complete the acquisition of the Gothard Industrial Center, 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.