Gramercy Property Trust has acquired, in separate transactions, three properties totalling approximately 423,000 square feet for an aggregate purchase price of approximately USD39.6 million.
Year one net operating income for the three properties totals approximately USD2.8 million (7.1 per cent initial cap rate; 7.8 per cent annualised straight-line cap rate) and a weighted average lease term of approximately 11.5 years.
The first property is an approximately 309,000 square foot packaging and distribution facility located in Elk Grove Village, Illinois (Chicago MSA), which is 100 per cent leased with annual rent escalations through December 2023 to one of the nation’s largest independent bakery and contract food manufacturers.
The second property is an approximately 89,000 square foot operations centre located in Nashville, Tennessee, which is 100 per cent leased with rent escalations through June 2029 to a global leader in services to the food, facilities management and career apparel industries.
The third property is an approximately 25,000 square foot office and retail bank branch located in St. Louis, Missouri, leased to two tenants with a weighted average lease term of five years.