Gramercy Property Trust Agrees to Purchase $331 Million, 9-Property Industrial Portfolio

NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust (NYSE:GPT), a real estate investment trust, announced today that it has entered into an agreement with a leading private real estate development and investment company to acquire a 9-property, 2.0 million square foot portfolio of Class-A industrial buildings (the “Portfolio”) for $331 million. The Portfolio is 100% leased with a weighted average remaining lease term of 10.4 years. The properties are located across eight markets throughout the United States which include Atlanta, Boston, Charlotte, Chicago, the Inland Empire, Minneapolis, Reno and Spartanburg. Over 80% of the NOI for the Portfolio is concentrated in four markets (Atlanta, Boston, Chicago and the Inland Empire) and nearly 90% of the rent from the Portfolio comes from a single, market-leading tenant. At closing, which is expected to occur by the end of the third quarter of 2017, the Company will assume $137 million of in-place debt, and will issue $133 million in OP Units to fund the acquisition. The OP Unit price will be based on a 30-day VWAP as of August 29, 2017, or $29.56 per share. The Company is acquiring the Portfolio at a 6.3% cash capitalization rate.