Gramercy Property Trust Announces $173 Million of Dispositions in Second Quarter to Date
June 02 2017 - 5:30AM
Business Wire
Gramercy Property Trust (NYSE:GPT), a real estate
investment trust, announced today that it has disposed of six
office assets, two retail bank branches and one vacant industrial
asset in the second quarter for aggregate gross proceeds of $173
million. These dispositions include two notable transactions: (i)
the sale of five office assets from the Company’s Gramercy Woods
campus in Jacksonville, FL at a 6.8% cap rate on next twelve months
net operating income for aggregate gross proceeds of $115 million
and (ii) the sale of one office asset in Coppell, TX for aggregate
gross proceeds of $42 million. The weighted average remaining lease
term by square footage for the occupied properties was 13.6 years
at closing and the blended exit cap rate for the occupied
properties was 5.1% on next twelve months NOI.
One year ago, Gramercy Property Trust announced the
transformation and rebranding of the Jacksonville campus as
Gramercy Woods. The campus is set on 90+ acres and consists of 10
buildings totaling approximately 1.2 million square feet of office
space. Prior to the Gramercy Woods rebranding, the campus was under
a master lease with a financial institution with approximately 7
years of remaining term. As part of the transformation, Gramercy
negotiated a new 15-year lease with the financial institution for
the 800,000 square feet across five office buildings which have now
been sold, as well as new leases to convert the remaining 400,000
square feet into multi-tenant office buildings.
Year to date, the Company has sold $225 million of non-core
assets in the United States and Canada, of which $197 million or
87.7% were office and retail bank branch assets, continuing to
progress toward the Company’s stated goal of reducing office
exposure. Pro forma for year-to-date closed acquisitions and
dispositions, industrial assets account for 72.5% of the Company’s
estimated next twelve months cash NOI, while estimated next twelve
months cash NOI from office and specialty assets has been reduced
to 22.2% and 5.3%, respectively. Currently, the Company has
approximately $39 million of non-core assets under contract for
sale or awarded to buyers, and approximately $180 million of assets
currently in the market for sale.
About Gramercy Property Trust
Gramercy Property Trust is a leading global investor and asset
manager of commercial real estate. The Company specializes in
acquiring and managing high quality, income producing commercial
real estate leased to high quality tenants in major markets in the
United States and Europe.
To review the Company’s latest news releases and other corporate
documents, please visit the Company's website at www.gptreit.com or
contact Investor Relations at 888-686-0112.
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Gramercy Property TrustAshley M. Mancuso, 212-297-1000Investor
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