Gramercy Acquires Industrial Properties in Chicago, Boston Areas

NEW YORK CITY—Locally-based Gramercy Property Trust Inc. reports it has paid $39.2 million in separate all-cash transactions for two industrial properties in the Chicago region and one in the Boston area totaling approximately 555,000 square feet.

The company states that the three properties are 100% leased with a weighted average lease term of approximately 10 years. For the three properties, net operating income is anticipated to be approximately $2.8 million (7.3% initial cap rate; 7.9% annualized straight-line cap rate) in the first year with annual rent escalations throughout each lease term.

The first property acquired by the REIT is an approximately 160,000-square-foot manufacturing warehouse and distribution facility located in Kenosha, WI, which is leased through September 2024 to a global manufacturing and technology company. The second property is an approximately 110,000-square-foot fulfillment center located in Bloomingdale, IL, which is leased through July 2024 to a national foodservice management company. The third property is an approximately 285,000-square-foot warehouse and distribution facility located in Worcester, MA, which is leased through March 2024 to one of the largest independent soft-drink bottlers and manufacturers in the country.

On Sept. 19, Gramercy established an at-the-market equity sales program where it may issue up to $100 million of its common stock. The company intends to use any proceeds of the offering for general corporate purposes, including acquisitions of assets, repayment of debt and for working capital purposes.

Gramercy Property Trust CEO Gordon F. DuGan says, “Gramercy is pleased to have launched an ATM program, which we believe will provide the company with another useful and cost effective means of accessing equity capital, which we will use primarily to fund property acquisitions.”