NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust Inc. (NYSE:GPT), a real estate investment trust, announced today that it has closed the previously announced acquisition from Dividend Capital Diversified Property Fund Inc. of a portfolio of 12 single-tenant net lease assets totaling approximately 2.7 million square feet for an aggregate purchase price of approximately $398.6 million plus transaction costs. For the combined portfolio, Year 1 net operating income is anticipated to be approximately $31.6 million (7.9% initial cap rate; 8.3% annualized straight-line cap rate) with a weighted average lease term of approximately 6.4 years.
In connection with the acquisition, the Company assumed an existing secured debt totaling approximately $128.0 million with remaining term of 5.3 years until maturity. The loan encumbers 11 of the 12 assets in the portfolio.
The Company is currently pursuing lease extensions with two tenants where, if successful, the weighted average lease term for the portfolio would increase to more than eight years. However, there are no assurances that the Company will execute a lease extension on the currently proposed terms or at all.
About Gramercy Property Trust
Gramercy Property Trust Inc. is a leading global investor and asset manager of commercial real estate. Gramercy specializes in acquiring and managing single-tenant, net-leased industrial and office properties purchased through sale-leaseback transactions or directly from property developers and owners. We focus on income producing properties 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 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.