NEW YORK CITY—Gramercy Property Trust Inc. said late Monday afternoon that it was buying out its joint venture partner, Garrison Investment Group, in a 3.1-million-square-foot portfolio of office properties leased mainly to Bank of America. The deal values the portfolio at about $395 million.
GPT will pay $92.2 million to buy Garrison's 50% stake in the JV, and will also repay the existing $200-million loan encumbering the portfolio with proceeds from a new, unsecured $400-million credit facility, which it also announced on Monday. Separately, the REIT on Monday said that it would issue 34 million shares of common stock, with proceeds going partly toward the cash portion of the Garrison JV buyout.
Now standing at 67 properties collateralizing the $200-million loan plus three more that are held for sale, the portfolio ran to 115 assets and 5.6 million square feet when GPT and Garrison announced their joint venture in August 2012. The JV acquired the portfolio from a KBS Real Estate Investment Trust 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.
