Real estate investment trust Gramercy Property Trust announced the acquisition of a 12-building portfolio of industrial facilities for $115.2 million, assuming about $46 million in debt.
In connection with the acquisition, the company assumed three mortgages totaling approximately $37.3 million, and one mortgage totaling approximately $10.9 million CAD, as a portion of the portfolio is in Canada.
The loans an average remaining term of 5.5 years, a weighted average interest rate of 4.8 percent and encumber 11 of the 12 assets in the portfolio.
It consists of 12 single-tenant net lease industrial assets totaling approximately 1.5 million sq ft. The majority are located in major markets including, New Jersey, Los Angeles, Chicago, Baltimore and Toronto.
Aggregate year 1 net operating income of the properties will be approximately $9.4 million (8.1 percent initial cap rate and a 8.9 percent annualized straight-line cap rate) with a weighted average remaining lease term of approximately 13 years, according to a statement from the REIT.
Gramercy Property Trust, headquartered at SL Green’s 521 Fifth Avenue in Midtown Manhattan (pictured), is a global investor and asset manager of commercial real estate, specializing in acquiring and managing single-tenant, net-leased industrial and office properties purchased through sale-leaseback transactions or directly from property developers and owners.
Yesterday, Real Estate Capital reported that the REITs affiliated investment fund, Gramercy Property Europe — a joint venture among the Company and investment entities managed by EJF Capital,, Fir Tree Partners and Senator Investment Group, along with other investors –acquired a 12-building portfolio, of which six are located in the Netherlands, four in Germany and two in Poland.
The fund has initial equity commitments of €350 million and invests predominantly in industrial, office and retail assets in Germany, the Netherlands, the Nordics, the UK and other selected European countries.
The REIT did not immediately return calls seeking additional comment.