Gramercy Property Trust Inc. of New York (NYSE:GPT), a real estate investment trust, has closed on the acquisition of an approximately 220,000 square foot food-grade cold storage and distribution facility located at 3701 S Avenue 3 ½ East in Yuma, Arizona. The sale price reported was $17.85 million ($81 PSF).
Yuma County boasts the longest growing season in the country and is where 90% of the nation’s leafy vegetables are grown from November through March. The building is 100% leased through September 2033 to Eastbound Farms, the leading organic food company in North America.
Built in 2001, the property had expansions added in 2004 and 2006, with 43 dock-high doors with levelers, locks, shelters and seals. Clear height is 32’-40’, and 26’ in production areas. The current 220,000 square-feet is expandable to 270,000 square-feet on 37.42 acres. With 186,405 square-feet capable of 34 degrees F or higher. There is 11,657 square-feet office/employee area with walkable utility service area with production scale positions, production wash line and refrigeration production area. Raw receiving pressure coolers, raw product cooler, and refrigerated shipping docks.
Property sold in a sale leaseback agreement with year 1 net operating income of approximately $1.4 million (8.0% initial cap rate, 9.25% GAAP cap rate) with fixed annual rent escalations throughout the lease term. The facility was acquired all-cash.
Gramercy Property Trust Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing industrial and office properties net leased to high quality tenants in major markets throughout the United States. The Company also operates an asset management business that manages for third-parties, including our joint venture partners, commercial real estate assets throughout the United States primarily leased to financial institutions and affiliated users.
Visit the Company’s website at www.gptreit.com or contact Investor Relations at (212) 297-1000