ARCTRUST Private Capital, the capital markets division of ARCTRUST Group of Companies, announced the acquisition of a seven-property single-tenant net lease portfolio that will be offered to accredited investors through a Delaware statutory trust (DST) structure known as ARCTRUST Exchange II DST.
The portfolio includes two Pinnacle Bank locations, three CVS Pharmacy properties, and two NAPA Auto Parts properties located across six states. The assets comprise approximately 51,192 square feet of net rentable space on roughly 7.75 acres of land in North Carolina, Alabama, Kentucky, Michigan, Tennessee, and Virginia.
According to the company, the portfolio has a weighted average remaining lease term of approximately 13.6 years and includes contractual rent escalations and renewal options across all properties. Each asset is leased under an absolute triple-net (NNN) structure, with tenants responsible for taxes, insurance, and maintenance expenses.
ARCTRUST said the acquisition aligns with its strategy of acquiring essential, service-oriented real estate occupied by creditworthy tenants under long-term lease agreements. The portfolio provides exposure to three industries: retail pharmacy, automotive aftermarket, and community banking.
The two Pinnacle Bank properties are located in Lebanon, Tennessee, within the Nashville metropolitan area, and Roanoke, Virginia. Pinnacle Bank is a subsidiary of Pinnacle Financial Partners, a financial holding company that provides banking, investment, trust, mortgage, and insurance services throughout the southeastern United States.
The three CVS Pharmacy locations are situated in Black Mountain, North Carolina, within the Asheville metropolitan area, as well as Gadsden, Alabama, and Paducah, Kentucky. CVS Pharmacy operates approximately 9,000 locations nationwide and is part of CVS Health.
The NAPA Auto Parts properties are located in Charlotte and Niles, Michigan. The locations are leased to Motor Parts & Equipment Corporation, a subsidiary of Genuine Parts Company, which operates automotive and industrial replacement parts distribution businesses globally.
ARCTRUST noted that each property is located in an established suburban corridor and benefits from a long-term tenant presence and local demographic strength. The company believes the tenant mix and geographic diversification may appeal to 1031 exchange investors seeking income generation and capital preservation opportunities.
KEY QUOTES:
“This portfolio reflects ARCTRUST’s continued focus on acquiring essential, service-oriented real estate leased to creditworthy tenants under long-term net leases. Combining national retail pharmacy, automotive aftermarket, and established community banking locations across six states gives investors a level of tenant and geographic diversification that we believe may align well with the needs of 1031 exchange investors seeking durable income and capital preservation.”
Chris Wadelin, CEO, ARCTRUST Private Capital
