NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust (NYSE:GPT), a real estate investment trust, announced today that it has disposed of six office assets, two retail bank branches and one vacant industrial asset in the second quarter for aggregate gross proceeds of $173 million. These dispositions include two notable transactions: (i) the sale of five office assets from the Company’s Gramercy Woods campus in Jacksonville, FL at a 6.8% cap rate on next twelve months net operating income for aggregate gross proceeds of $115 million and (ii) the sale of one office asset in Coppell, TX for aggregate gross proceeds of $42 million. The weighted average remaining lease term by square footage for the occupied properties was 13.6 years at closing and the blended exit cap rate for the occupied properties was 5.1% on next twelve months NOI.
One year ago, Gramercy Property Trust announced the transformation and rebranding of the Jacksonville campus as Gramercy Woods. The campus is set on 90+ acres and consists of 10 buildings totaling approximately 1.2 million square feet of office space. Prior to the Gramercy Woods rebranding, the campus was under a master lease with a financial institution with approximately 7 years of remaining term. As part of the transformation, Gramercy negotiated a new 15-year lease with the financial institution for the 800,000 square feet across five office buildings which have now been sold, as well as new leases to convert the remaining 400,000 square feet into multi-tenant office buildings.
Year to date, the Company has sold $225 million of non-core assets in the United States and Canada, of which $197 million or 87.7% were office and retail bank branch assets, continuing to progress toward the Company’s stated goal of reducing office exposure. Pro forma for year-to-date closed acquisitions and dispositions, industrial assets account for 72.5% of the Company’s estimated next twelve months cash NOI, while estimated next twelve months cash NOI from office and specialty assets has been reduced to 22.2% and 5.3%, respectively. Currently, the Company has approximately $39 million of non-core assets under contract for sale or awarded to buyers, and approximately $180 million of assets currently in the market for sale.
About Gramercy Property Trust
Gramercy Property Trust is a leading global investor and asset manager of commercial real estate. The Company specializes in acquiring and managing high quality, income producing commercial real estate leased to high quality tenants in major markets in the United States and Europe.
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 888-686-0112.