Gramercy, TPG Form Single-Tenant Office Venture

TPG headquarters in Dallas

NEW YORK CITY—Gramercy Property Trust said Monday it had sold a 75% interest in a six-property office portfolio to TPG Real Estate, as part of a $400-million partnership the two firms have launched. To be known as Strategic Office Partners, the new platform will seek to acquire up to $1 billion in single-tenant office assets in high-growth metropolitan areas across the US over the next three years.

The Gramercy portfolio seeding the new venture is valued at $187.5 million, or $191 per square foot, with a weighted average remaining lease term of 3.6 years at closing weighted by square footage. It totals about one million square feet in three California metro areas—Los Angeles, San Francisco and San Diego—as well as Nashville and Minneapolis.