Gramercy Closes $207M Office Portfolio Sale
- Sep 01, 2016
By Keith Loria, Contributing Editor
New York—Gramercy Property Trust has closed on the sale of three single-tenant office buildings in Princeton, N.J., Burlington, Mass., and Bloomington, Minn., and one single-tenant industrial facility in Phoenix, Ariz., for a total of $206.7 million.
The weighted average remaining lease term for the four sold properties was 10.1 years at closing, and the blended exit cap rate was 7.4 percent on the next 12 months NOI.
With these latest dispositions, part of the company’s previously announced plan to dispose of select non-core assets following the merger with Chambers Street Properties, Gramercy Property Trust has now sold approximately $1.3 billion worth of single- and multi-tenant assets in the U.S. and Europe so far this year, including properties in Phoenix, Virginia and New Jersey.
On a recent earnings conference call, Gordon DuGan, Gramercy Property Trust CEO, said that acquisitions will drive the balance of Gramercy’s activity for the rest of the year, noting he “expects the company to be a net acquirer” of assets and especially so in the fourth quarter of 2016.
It’s been a busy time for the company. This week it closed two separate deals for single-tenant industrial properties in the Chicago MSA, aggregating $60.2 million. The first was a 147,923-square-foot, temperature-controlled, food-grade facility in McCook, and the second was a 238,423-square-foot distribution center located in Hanover Park.
Earlier this month, the REIT acquired single tenant industrial properties in the Boston MSA and the Memphis MSA aggregating $67.8 million. The former was a newly constructed 448,470-square-foot distribution center in Littleton, Mass., and the latter was a 677,160-square-foot distribution facility located in Byhalia, Miss.
Currently, Gramercy Property Trust has approximately $158.6 million in dispositions under contract, and approximately $117.8 million of assets currently in the market for sale.
Image courtesy of Gramercy Property Trust