NEW YORK CITY—Gramercy Property Trust Inc. saidlate Monday afternoon that it was buying out its joint venturepartner, Garrison Investment Group, in a3.1-million-square-foot portfolio of officeproperties leased mainly to Bank of America. Thedeal values the portfolio at about $395 million.
GPT will pay $92.2 million to buy Garrison's 50% stake in theJV, and will also repay the existing $200-million loan encumberingthe portfolio with proceeds from a new, unsecured $400-millioncredit facility, which it also announced on Monday. Separately, theREIT on Monday said that it would issue 34 million shares of commonstock, with proceeds going partly toward the cash portion of theGarrison JV buyout.
Now standing at 67 properties collateralizing the $200-millionloan plus three more that are held for sale, the portfolio ran to115 assets and 5.6 million square feet when GPT and Garrisonannounced their joint venture in August 2012. The JV acquiredthe portfolio from a KBS Real Estate InvestmentTrust Inc. subsidiary for $485 million.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
