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Gramercy Property Trust Jumps Into Fitness

NEW YORK CITY—The REIT has purchased a 1.3 million-square-foot portfolio of fitness centers around the nation.

By Rayna Katz | Updated on June 12, 2015

NEW YORK CITY—Gramercy Property Trust has closed on a 20-year sale-leaseback transaction with Life Time Fitness to acquire a portfolio of ten, large-format, high-end fitness centers for an aggregate purchase price of approximately $300 million. The portfolio totals approximately 1.3 million square feet located in major markets across the US. For the combined portfolio, Year 1 net operating income is anticipated to be approximately $19.5 million (6.5% initial cash cap rate; 7.5% annualized straight-line cap rate).

The company also announced that it is updating its previously announced outlook for 2015 to take into account stronger than expected acquisition volume to date and the $271.3 million equity offering completed on April 14th. No additional follow-on equity offerings during 2015 are assumed or required in connection with the updated outlook.

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