Gramercy Lands $331M Industrial Portfolio

By IvyLee Rosario

Nicholas Pell, Gramercy Property Trust

Gramercy Property Trust entered into an agreement with a private real estate development and investment company to purchase a nine-property industrial portfolio for $331 million. The acquisition comprises two million square feet of Class A assets and is 100 percent leased with an average remaining lease term of 10.4 years.

Upon closing, Gramercy will assume $137 million of in-place debt and will issue $133 million in OP Units to fund the purchase. The OP Unit price will be based upon a 30-day VWAP. The company will acquire the portfolio at a 6.3 percent cash capitalization rate. 

Top Industrial Markets

The properties are located across eight major markets, which include Atlanta, Boston, Charlotte, Chicago, the Inland Empire, Minneapolis, Reno and Spartanburg. More than 80 percent of the NOI for the portfolio is concentrated in four markets (Atlanta, Boston, Chicago and the Inland Empire) and nearly 90 percent of the rent from the assets comes from a single tenant. 

“We are excited to announce the details of this transaction which was included as part of our $386 million of acquisitions disclosed last week as awarded or under contract,” said Nicholas Pell, chief investment officer of Gramercy Property Trust, in prepared remarks. “The portfolio consists of several key logistics facilities within some of the top industrial markets in the US, with the majority of the facilities serving as critical pieces in the distribution footprint for a market leading logistics and delivery company. In addition, we are thrilled to welcome a new shareholder to our Company in structuring the deal as an OP unit transaction. The transaction structure highlights the creativity and flexibility of our investment platform, two hallmarks of how we secure attractive industrial investments in a competitive market environment.”

Image courtesy of Gramercy Property Trust