Gramercy Property Trust inks deal to buy $73.4M industrial portfolio

|About: Gramercy Property Trust,... (GPT)|By:, SA News Editor

The portfolio of four industrial properties totals about 1.6M square feet. Year 1 NOI is expected to be about $6.6M for an initial cap rate of 9%. The weighted average lease term on the properties is 6.7 years. The properties are located in Buford, GA, Ames, IA, Wilson, NC, and El Paso, TX.

Financing: GPT will assume four mortgages totaling about $45.5M with average remaining term of 3.6 years. The remaining $27.9M will be funded by issuing sellers limited partnership units in Gramercy's operating partnership, GPT Property Trust. These can be converted into GPT common stock on a 1:1 basis.