Seeking Alpha

Gramercy Property closes on $19.1M purchase

  • The 187K square foot cold storage facility and dry warehouse located in Arlington, IL is 100% leased through 2019 to a specialty food importer and distributor. Year 1 NOI should be about $1.5M with annual rent escalations built into the lease. The initial cap rate is 8.1%, and the annualized straight-line cap rate is 8.4%.
  • GPT's purchase was an all-cash deal.
  • Source: Press Release
Comments (4)
  • Chris DeMuth Jr.
    , contributor
    Comments (5367) | Send Message
     
    On track. So far so good.
    20 Aug 2014, 08:49 AM Reply Like
  • samdhale
    , contributor
    Comments (9) | Send Message
     
    Chris, What do you foresee in regards to additional distributions on the common? Any ideas regarding the possible timing of increases?

     

    Thanks for your continuing input!!

     

    Sam Hale
    20 Aug 2014, 10:11 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (5367) | Send Message
     
    Sam,

     

    (NYSE:GPT) management is super conservative. They are always going to pick dividend rates slightly less than they could, so as to make 100% certain that they can maintain them and increase them over time. I think that they want to pay them out of existing cash flow and they want to be able to have a string of announcements regularly increasing them. So, $0.01 increases will probably be common announcements.

     

    -C
    20 Aug 2014, 10:17 AM Reply Like
  • johnbarleycorn
    , contributor
    Comments (133) | Send Message
     
    A Sonny outlook...the beat goes on
    20 Aug 2014, 04:24 PM Reply Like
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