Gramercy Property Trust Acquires Four Facilities for a Total Purchase Price of Approximately $82 Million
NEW YORK--(BUSINESS WIRE)-- Gramercy Property Trust Inc. (NYSE: GPT) announced today that it has closed on four acquisitions: a wholesale automotive auction facility in Dallas, Texas, an industrial cold storage facility in Southern New Jersey and two cross-dock truck terminals located in Houston, Texas and Orlando, Florida.
The wholesale automotive auction facility is located on a 175-acre land parcel in Hutchins, Texas (Dallas MSA), approximately 2.5 miles from the I-20 and I-45 interchange and approximately two miles from the Dallas Intermodal Terminal (DIT). The property is a fully integrated, state-of-the-art automotive auction facility 100% leased through June 2029 to one of the largest wholesale car auction companies in North America. Year 1 net operating income is approximately $4.9 million (8.4% initial cap rate), with fixed annual rent escalations throughout the lease term. The facility was acquired for approximately $58.5 million including the assumption of a $26.3 million, fully-amortizing first mortgage that is co-terminus with the lease. The loan has a fixed rate of 6.95%.
The industrial freezer/cooler facility is a newly constructed 70,000 square facility located in Logan Township, New Jersey (Philadelphia MSA), approximately eight miles from the New Jersey Turnpike and I-295 interchange. The building is 100% leased through May 2028 to one the largest wholesale distributors of natural, organic and specialty foods in North America. Year 1 net operating income is approximately $736,000 (6.2% initial cap rate), with fixed annual rent escalations throughout the lease term. The facility was acquired in an all-cash transaction for a purchase price of approximately $11.8 million.
The Houston terminal has 189 dock doors and is located on approximately 33 acres off the I-610 loop and 1.5 miles from the I-10 interchange. The Houston Terminal is leased through May 2019. The Orlando terminal has 72 dock doors and is located on approximately 15 acres one mile from Highway 528 and Highway 91 interchange and eight miles from the Orlando International Airport. The Orlando terminal is leased through January 2019. The terminals are both 100% leased to a leading national less-than-truckload (LTL) carrier under separate leases. Year 1 aggregate net operating income from the two terminals is approximately $952,000 (8.0% initial cap rate), with rental escalations every 12 months based upon the increase in CPI, subject to a minimum increase. The two cross-dock truck terminals were acquired in a single all-cash transaction for a total purchase price of approximately $12.0 million.
Gordon F. DuGan, Chief Executive Officer of Gramercy Property Trust, commented, "We've had a very busy second quarter 2013, closing $131. million in new acquisitions and adding a number of high quality net leased assets to the portfolio. Our investments during the second quarter had an average lease term of 15.1 years and an average cap rate of 8.0% (cash) / 9.0% (GAAP). We are extremely pleased with the pace and quality of transactions we are able to source and close and continue to focus on building a best-in-class, net lease portfolio."
About Gramercy Property Trust
Gramercy Property Trust Inc. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint ventures, 105 assets totaling approximately 6 million square feet, net leased on a long-term basis to high quality corporate tenants, in a variety of industries. The Company's property management business, operating under the name Gramercy Asset Management, currently manages for third-parties, approximately $1.9 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania, and St. Louis, Missouri.
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.
Gramercy Property Trust Inc.
Jon W. Clark, Chief Financial Officer, 212-297-1000
Emily Pai, Investor Relations, 212-297-1000
KEYWORDS: United States North America Florida New Jersey New York Texas
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