Gramercy Property Trust Inc. GPT disclosed the acquisition of two industrial buildings aggregating 222,100 square feet in Norcross, GA. The company shelled out $12.5 million in cash for the transaction.
Of the two warehouses, one is leased to a leading producer, servicer and supplier of diesel and gasoline engines. This property encompasses 142,100 square feet of space. The other property is leased to a leading distributor of tools, equipment and machinery to the stone fabrication industry. It covers an area of 80,000 square feet of space.
The acquisitions seem to be a strategic fit for Gramercy Property. The properties have a weighted average remaining lease term of 8.9 years and the combined year 1 net operating income would be around $861,100 (6.9% initial cap rate).
Gramercy Property operates as a commercial real estate investment and asset management company organized as a real estate investment trust (REIT). The company owns and operates office and industrial properties, net leased on a long-term basis to tenants. Gramercy Property Trust Inc., formerly known as Gramercy Capital Corp., is headquartered in New York.
Notably, in Jul 2015, Gramercy Property announced a definitive deal to merge with Chambers Street Properties CSG. This transaction would create a company with an expected enterprise value of around $5.6 billion. The merger is expected to close in Dec 2015.
Gramercy Property currently has a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like Cousins Properties Incorporated CUZ and Highwoods Properties Inc. HIW. Both stocks have a Zacks Rank #2 (Buy).
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