HOUSTON — Houston-based Weingarten Realty Investors (NYSE: WRI) has completed the sale of its 52-property, wholly owned industrial portfolio to DRA Growth and Income Fund VII for $382.4 million. The sale price represents a capitalization rate of approximately 8 percent.

“We are pleased to acquire this sizable industrial portfolio featuring solid income returns and value-added upside,” said David Luski, president and CEO of New York City-based DRA Advisors. “This transaction is exemplary of our strategy of collaborating with public REITs who wish to strategically divest assets via outright sale or joint venture.”

The properties total 9.6 million square feet and are located in Florida, Georgia, Tennessee, Texas and Virginia. As part of the transaction, DRA assumed one secured loan of $4.9 million.

“The completion of this portfolio sale is a significant step in our previously outlined capital recycling initiative and effectively positions Weingarten as a pure-play retail REIT,” said Drew Alexander, president and CEO of Weingarten. “We will continue our commitment in building shareholder value through the repositioning of the retail portfolio into core markets with high barriers to entry, strong growth potential and strong demographics.”

The company will use the money retained from the sale to pay down amounts outstanding under its revolving credit facility and repay a $200 million unsecured term loan. J.P. Morgan Securities served as financial advisor to the seller in the transaction.

As of March 31, Weingarten’s portfolio included more than 74.1 million square feet. The company owns 309 neighborhood and community shopping centers in 22 states.

DRA Advisors, an institutional real estate investment firm specializing in value-added strategies, manages more than $9 billion in assets and approximately 592 properties.

Weingarten’s share price closed at $25.37 on May 25, up from $24.66 a year earlier.

— Savannah Duncan