Gramercy Property Trust to acquire $479M core logistics portfolio
Gramercy Property Trust announced that it has entered into an agreement to acquire a 41-property, 7.8M square foot portfolio of modern warehouse industrial buildings for $479M. 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. Year to date, the company has closed $519M 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 $998M. Currently, the company has an additional $386M of acquisitions awarded or under contract.