Gramercy closes on six more acquisitions


For those wondering what lit a fire under Gramercy Property Trust (GPT) late last week, this news isn't it, but it does show the company continuing to execute on its business plan. Gramercy announces the acquisition of six more properties for a total purchase price of $86M. Year 1 NOI is expected at $6.4M with initial cap rate of 7.5% (GAAP cap is 8.6%). There are fixed rent escalations throughout the respective lease terms (weighted average length of leases is 11.6 years). Gramercy also assumed a $22.5M fixed-rate mortgage at 4% with 6.1 years remaining, secured by one of the purchased properties.

The company also closed on a 10-year, $12.6M mortgage with 5.15% interest rate secured by its previously purchased cold storage and distribution facility in Yuma, AZ.

Comments (7)
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    Hopefully, dividends for common shareholders next year!
    25 Nov 2013, 09:44 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11101) | Send Message
     
    I think that it is reasonable to anticipate a steady, growing dividend starting at the beginning of next quarter.
    25 Nov 2013, 10:10 AM Reply Like
  • MoDawg
    , contributor
    Comments (10) | Send Message
     
    I believe DuGan said 1st quarter of 2014, which would be early April. QE in January is for Q4 2013
    25 Nov 2013, 03:22 PM Reply Like
  • inkyx
    , contributor
    Comments (523) | Send Message
     
    What lit the fire underneath the price? I was debating on adding, but, alas, too late.
    25 Nov 2013, 12:13 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11101) | Send Message
     
    This is the last quarter to buy GPT before it pays a dividend. Next year could be the last year to buy GPT as a standalone company.
    25 Nov 2013, 12:22 PM Reply Like
  • SaltyDog62
    , contributor
    Comments (835) | Send Message
     
    Any insights as which large reit will buy GPT?
    26 Nov 2013, 12:09 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11101) | Send Message
     
    American Realty Capital Properties (ARCP) may have interest in owning GPT at some point.
    26 Nov 2013, 06:29 AM Reply Like
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