Item 1.01.
Entry into a Material Definitive Agreement.
Purchase and Sale Agreement for
Executive Airport Distribution Center
On September 21, 2018, BCI IV Acquisitions LLC, a wholly-owned subsidiary of Black Creek Industrial REIT IV Inc. (the “Company”), entered into an Agreement for Purchase and Sale (the “Agreement”) with US Industrial Fund II Holding, LLC and South 15 PG, LLC (collectively, the “Seller”) to purchase all of the issued and outstanding shares of common membership interests in certain entities owned by the Seller, which entities in turn own an underlying property consisting of one industrial building located in Henderson, Nevada totaling approximately 482,000 square feet on approximately 27.9 acres (the “
Executive Airport Distribution Center
”). The building recently reached shell completion and tenant improvements are in progress. The building is 100% pre-leased to one customer with a lease term of 5.0 years. The lease will commence upon completion of the tenant improvements and receipt of certificate of occupancy. Upon consummation of the acquisition, the customer lease agreement is expected to be assigned to and assumed by the Company through a wholly-owned subsidiary. In general, the customer will be responsible for paying directly or reimbursing the landlord for its 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 $51,050,000, 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 $2,000,000 into an escrow account. 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
Executive Airport Distribution Center
is expected to close during the fourth quarter of 2018. There is no assurance that the Company will be able to purchase the
Executive Airport Distribution Center
on the terms set forth herein. The consummation of the acquisition is subject to 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
Executive Airport Distribution 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
Executive Airport Distribution 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.