Gramercy Property Trust to Purchase $331 Million, 9-Property Industrial Portfolio

8/30/17

NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust (NYSE:GPT), a real estate investment trust, announced today that it has entered into an agreement with a leading private real estate development and investment company to acquire a 9-property, 2.0 million square foot portfolio of Class-A industrial buildings for $331 million. The Portfolio is 100% leased with a weighted average remaining lease term of 10.4 years. The properties are located across eight markets throughout the United States which include Atlanta, Boston, Charlotte, Chicago, the Inland Empire, Minneapolis, Reno and Spartanburg. Over 80% of the NOI for the Portfolio is concentrated in four markets (Atlanta, Boston, Chicago and the Inland Empire) and nearly 90% of the rent from the Portfolio comes from a single, market-leading tenant. At closing, which is expected to occur by the end of the third quarter of 2017, the Company will assume $137 million of in-place debt, and will issue $133 million in OP Units to fund the acquisition. The OP Unit price will be based on a 30-day VWAP as of August 29, 2017, or $29.56 per share. The Company is acquiring the Portfolio at a 6.3% cash capitalization rate.

Nicholas Pell, Chief Investment Officer of Gramercy Property Trust, stated, "We are excited to announce the details of this transaction which was included as part of our $386 million of acquisitions disclosed last week as awarded or under contract. The portfolio consists of several key logistics facilities within some of the top industrial markets in the US, with the majority of the facilities serving as critical pieces in the distribution footprint for a market leading logistics and delivery company. In addition, we are thrilled to welcome a new shareholder to our Company in structuring the deal as an OP unit transaction. The transaction structure highlights the creativity and flexibility of our investment platform, two hallmarks of how we secure attractive industrial investments in a competitive market environment.”

Inclusive of the 9-property industrial portfolio, as well as other recently announced transactions under contract or closed, the Company’s 2017 investment volume totals $1.3 billion of fully stabilized assets at a 6.4% cash capitalization rate with 8.1 years of weighted average lease term at closing and $110 million of value-add assets that stabilize to a 7.0% cash cap rate. The Company continues to actively evaluate new transactions on an ongoing basis and final 2017 acquisition volume may exceed the amounts listed herein.

A more detailed description of the transaction is outlined in a presentation posted on www.gptreit.com.

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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