Britt Winterer, managing director and head of GPT's build-to-suit practice, says the JV will allow his company to capitalize on the growing demand for e-commerce distribution facilities across the United States and generate attractive risk adjusted returns for our public shareholders.” In connection with the acquisition of the e-commerce portfolio, GPT will be issuing between 2.7 million and 4.8 million OP units to the seller as a component of the purchase price.

Key logistics markets are also a feature of the 41-property portfolio that GPT is buying; they're located in the Atlanta, Chicago, Columbus, Dallas, Houston and Memphis markets. It's 93% leased, with a weighted average remaining lease term of 4.1 years; GPT says the portfolio's near-term lease roll is concentrated in properties that have contract rents which are either at or below market rent levels. GPT is acquiring the properties free and clear of debt at a 6.2% cap rate.

“The portfolio adds a critical mass of core industrial properties in six key logistics markets at compelling returns, and highlights our capability to underwrite and secure attractive industrial investments in today's marketplace,” says Nicholas Pell, GPT's CIO. “The portfolio has an average age of approximately 12 years and adds 41 high-quality, functional industrial buildings to our existing footprint with competitive in-place rents, and potential leasing upside.”

Year to date, GPT has closed $519 million of acquisitions at an average initial cash cap rate of 6.9% and 8.1 years of weighted average remaining lease term at closing. With this portfolio acquisition, which is expected to close before the end of the current quarter, the net lease REIT's 2017 investment volume will be $998 million. Including the first tranche of the e-commerce JV, GPT has an additional $386 million of acquisitions awarded or under contract.

NEW YORK CITY—Gramercy Property Trust (GPT) said late Tuesday that it had launched a new joint venture to acquire, own and manage newly constructed e-commerce distribution facilities across the US, with an initial purchase of $642 million on a forward basis. Separately, the REIT said it had agreed to buy a 41-property, 7.8-million-square-foot warehouse portfolio for $479 million.

Neither the seller or sellers of the portfolio nor any JV partners were identified. Regarding the JV, the company said it was in discussions with several institutional capital partners and had reached an agreement with a sovereign investor to anchor the venture.

The $642-million forward purchase GPT announced Tuesday is comprised of seven newly constructed class A bulk distribution properties totaling six million square feet, each of which will be 100% leased to a leading e-commerce company. It's being completed in two tranches, with the initial $360-million purchase of four properties expected to close in the fourth quarter. The $282-million second tranche is expected to close in Q3 2018.

All seven properties are located in major logistics markets: two in the Inland Empire; and one each in Dallas; Jacksonville, FL; the New England I-95 Corridor; Southern NJ; and Winchester, VA. The separate leases all have an initial 15-year term with annual 1.75% to 2.00% rental escalations.

Britt Winterer, managing director and head of GPT's build-to-suit practice, says the JV will allow his company to capitalize on the growing demand for e-commerce distribution facilities across the United States and generate attractive risk adjusted returns for our public shareholders.” In connection with the acquisition of the e-commerce portfolio, GPT will be issuing between 2.7 million and 4.8 million OP units to the seller as a component of the purchase price.

Key logistics markets are also a feature of the 41-property portfolio that GPT is buying; they're located in the Atlanta, Chicago, Columbus, Dallas, Houston and Memphis markets. It's 93% leased, with a weighted average remaining lease term of 4.1 years; GPT says the portfolio's near-term lease roll is concentrated in properties that have contract rents which are either at or below market rent levels. GPT is acquiring the properties free and clear of debt at a 6.2% cap rate.

“The portfolio adds a critical mass of core industrial properties in six key logistics markets at compelling returns, and highlights our capability to underwrite and secure attractive industrial investments in today's marketplace,” says Nicholas Pell, GPT's CIO. “The portfolio has an average age of approximately 12 years and adds 41 high-quality, functional industrial buildings to our existing footprint with competitive in-place rents, and potential leasing upside.”

Year to date, GPT has closed $519 million of acquisitions at an average initial cash cap rate of 6.9% and 8.1 years of weighted average remaining lease term at closing. With this portfolio acquisition, which is expected to close before the end of the current quarter, the net lease REIT's 2017 investment volume will be $998 million. Including the first tranche of the e-commerce JV, GPT has an additional $386 million of acquisitions awarded or under contract.