NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust Inc. (NYSE:GPT), a real estate investment trust, announced today that it closed the previously announced acquisition of three industrial properties totaling approximately 1.5 million square feet for an aggregate purchase price of approximately $69.0 million plus transaction expenses. For the combined portfolio, Year 1 net operating income is anticipated to be approximately $6.2 million (9.0% initial cap rate; 8.8% annualized straight-line cap rate) with a weighted average lease term of approximately 6.6 years.
The Company assumed three in-place mortgage loans totaling approximately $42.9 million with an average remaining term of 3.1 years until maturity. The Company 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 ("OP Units") of GPT Property Trust LP, 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.
About Gramercy Property Trust
Gramercy Property Trust Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing industrial and office properties net leased to high quality tenants in major markets throughout the United States. The Company also operates a commercial real estate asset and property management business for third parties.
To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gptreit.com or contact Investor Relations at 212-297-1000.
This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including the factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.