Granite Real Estate Investment Trust has acquired a majority interest in two income-producing flex industrial properties, one located in Logan, New Jersey and the other in Savannah, Georgia.
The buildings total 713,040 square feet and were acquired for a total purchase price (100 per cent interest) of USD39.8m, excluding acquisition costs.
Granite's investment was completed through a joint venture with the vendor, Dermody Properties. Dermody Properties, a US based national industrial developer, has retained the remaining interest and will continue to be responsible for property management and leasing.
The two properties are new format, multi-tenant industrial buildings that are 95 per cent leased, with a weighted average lease term of 3.7 years. Major tenants include UPS, Dole and Sears.
The total purchase price for Granite's interest, including all transaction and due diligence costs, was approximately USD36.5m.
Granite's investment was funded through a combination of first mortgage debt of USD21.5m (representing Granite's portion), Granite's credit facility and cash on hand.
Tom Heslip, chief executive of Granite, says: "We are pleased to have completed our first transaction in the implementation of Granite's growth and diversification strategy. We also look forward to our future dealings with our joint venture partner, Dermody Properties, who has local market expertise and a long and successful track record in developing, operating and managing industrial properties in the US."