Gramercy Property Trust has acquired three industrial properties totalling approximately 1.5 million square feet for USD69.0 million plus transaction expenses.
For the combined portfolio, year one net operating income is anticipated to be approximately USD6.2 million (9.0 per cent initial cap rate; 8.8 per cent annualised straight-line cap rate) with a weighted average lease term of approximately 6.6 years.
The company assumed three in-place mortgage loans totalling approximately USD42.9 million with an average remaining term of 3.1 years until maturity.
It funded the remaining balance of the purchase price, net of certain closing costs paid in cash, with the issuance of approximately 3.8 million limited partnership units of GPT Property Trust, the company’s operating partnership.
OP units can be converted on a 1:1 basis into the company’s common shares at the election of the unit holder.