NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust (NYSE:GPT), a real estate investment trust, announced today that it has entered into an agreement to acquire a 41-property, 7.8 million square foot portfolio of modern warehouse industrial buildings (the “Portfolio”) for $479 million. The Portfolio is 93% leased with a weighted average remaining lease term of 4.1 years; near term lease roll is concentrated in properties that have contract rents which are either at or below market rent levels. The Portfolio is 100% located in six key logistics markets throughout the United States which include Atlanta, Chicago, Columbus, Dallas, Houston and Memphis. The Company will acquire the Portfolio free and clear of any debt at a 6.2% capitalization rate on estimated stabilized NOI.
Nicholas Pell, Chief Investment Officer of Gramercy Property Trust, stated, “We are thrilled to announce this new investment. The portfolio adds a critical mass of core industrial properties in six key logistics markets at compelling returns, and highlights our capability to underwrite and secure attractive industrial investments in today’s marketplace. The portfolio has an average age of approximately 12 years and adds 41 high-quality, functional industrial buildings to our existing footprint with competitive in-place rents, and potential leasing upside.”
Year to date, the Company has closed $519 million of acquisitions at an average initial cash cap rate of 6.9% and 8.1 years of weighted average remaining lease term at closing. With this portfolio acquisition, which is expected to close in the third quarter of 2017, the Company’s 2017 investment volume will be $998 million. Currently, the Company has an additional $386 million of acquisitions awarded or under contract.
A more detailed description of the transaction is outlined in a presentation posted on www.gptreit.com.
About Gramercy Property Trust
Gramercy Property Trust is a leading global investor and asset manager of commercial real estate. The Company specializes in acquiring and managing high quality, income producing commercial real estate leased to high quality tenants in major markets in the United States and Europe.
To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gptreit.com or contact Investor Relations at 888-686-0112.
