Alston & Bird client Broadstone Net Lease, Inc. (BNL) has entered into a definitive agreement with its external manager, Broadstone Real Estate LLC and its affiliates, to internalize BNL’s management through a series of transactions involving Broadstone Real Estate’s acquisition by BNL’s operating company, Broadstone Net Lease LLC.
Under terms of the agreement, BNL will pay $300 million in consideration, consisting of cash, stock, operating partnership units, and debt assumption, with the potential for an additional earnout consideration of $75 million based on certain performance targets.
BNL anticipates the transaction will generate cost savings of more than $25 million in the first year, create a simplified structure with greater alignment between shareholders and management, and result in the continued leadership by the Broadstone Real Estate management team, which will join BNL.
The transaction is expected to close early in the first quarter of 2020, subject to the satisfaction of certain conditions to closing.
A publicly reporting, privately offered real estate investment trust, BNL invests in freestanding, single-tenant, net-leased commercial properties and currently maintains a diversified portfolio of 662 retail, healthcare, industrial, office, and other properties in 42 U.S. states and Canada.
Advising BNL is an Alston & Bird team led by partners David E. Brown, Rosemarie Thurston, Jim Croker, and Michael Kessler and associates Ian Jones, Dougie Barnard, and Helena Gu (REITs & Funds); partner Justin Howard and associate Gerard Hart (Capital Markets & Securities); counsel Kerry Wenzel (Employee Benefits & Executive Compensation); and associate Stefanie Kavanagh (Federal & International Tax).