Gramercy Property Trust (GPT) puts more money to work, closing on the purchase of a...


Gramercy Property Trust (GPT) puts more money to work, closing on the purchase of a build-to-suit of about a 120K square foot industrial facility in southern Florida and a 62,230 square foot industrial property in Bellmawr, NJ. Construction costs for the FL property are expected to be $25M and generate GAAP operating income of about $2.3M next year. The NJ property cost about $4.2M. The company also sheds more noncore assets, selling a mortgage loan defeasance pool acquired as part of the BofA portfolio last year. (PR)

Comments (8)
  • Steven Reiman
    , contributor
    Comments (333) | Send Message
     
    9.2% cap rate on the FL property...assuming the NJ will be about the same.
    5 Jun 2013, 09:09 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10211) | Send Message
     
    You could drive a truck through the spread.
    5 Jun 2013, 09:35 AM Reply Like
  • Steven Reiman
    , contributor
    Comments (333) | Send Message
     
    Assuming they are levering their remaining investment capacity 1:1, they still have 110M+ capacity to invest. Hope they can continue to take advantage of low cost funding.
    5 Jun 2013, 09:47 AM Reply Like
  • arturo99
    , contributor
    Comments (3) | Send Message
     
    that's good work....Need to continue to find those hidden gems
    5 Jun 2013, 10:42 AM Reply Like
  • owh
    , contributor
    Comments (16) | Send Message
     
    Any word/idea on the purchase price of the Florida property? Or is that wrapped up in total construction costs? Good to see them busy.
    5 Jun 2013, 10:51 AM Reply Like
  • SevenCostanza
    , contributor
    Comments (46) | Send Message
     
    Yeah I was a little unclear on the purchase price as well. The PR just mentions construction costs. A little ambiguous.
    5 Jun 2013, 12:58 PM Reply Like
  • Steven Reiman
    , contributor
    Comments (333) | Send Message
     
    The headline number on the press release said acquisition of both properties was 30M. I think its fair to assume that based on that, the actual purchase price of the Florida property is either included in the construction or is de minimus.

     

    Either way, we should get a more detailed answer at tomorrow's presentation.
    5 Jun 2013, 01:04 PM Reply Like
  • HFI
    , contributor
    Comments (1459) | Send Message
     
    Keep up the good work GPT! Gordon and his team are definitely executing on all cylinders. Glad they are acquiring attractive properties, but the most important thing is, they are doing it with a nice cap rate.
    5 Jun 2013, 07:33 PM Reply Like
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