Gramercy Property Trust has closed the acquisition of an approximately 220,000 square foot food-grade cold storage and distribution facility located in Yuma, Arizona.
Yuma County boasts the longest growing season in the country and is where 90 per cent of the nation’s leafy vegetables are grown from November through March.
The building is 100 per cent leased through September 2033 to the leading organic food company in North America.
Year one net operating income is approximately USD1.4m (8.0 per cent initial cap rate, 9.25 per cent GAAP cap rate) with fixed annual rent escalations throughout the lease term. The facility was acquired all-cash in a sale leaseback transaction.