October 6, 2017

On October 6, 2017, Granite REIT acquired a 100% interest in three industrial buildings located in Cincinnati, Ohio and Olive Branch, Mississippi. The buildings total 2,170,719 square feet and were acquired at an in-going cap rate of 6.1% for a total purchase price of U.S. $122.8 million, excluding acquisition costs. The portfolio has a WALT of 4.85 years and was funded through a combination of cash on hand and Granite’s credit facility.

The following are the salient details of the investment:

535 Gateway Blvd., Monroe, Ohio

  • Square Feet: 651,515
  • Occupancy: 100%
  • Year Built: 2008
  • Leased: One tenant, remaining term is 2.2 years

601 Gateway Blvd., Monroe, Ohio

  • Square Feet: 649,312
  • Occupancy: 100%
  • Year Built: 2014
  • Leased: Two tenants, weighted average remaining term is 11.7 years

8735 S. Crossroads Dr., Olive Branch, MS

  • Square Feet: 869,892
  • Occupancy: 100%
  • Year Built: 2013
  • Leased: Two tenants, weighted average remaining term is 1.7 years

December 22, 2014

On December 22, 2014, Granite announced its agreement to acquire two income producing properties, and a land parcel for future development, located in Plainfield, Indiana, for US$68.75 million. Granite’s funding for this acquisition will be from a combination of its existing line of credit and cash on hand.

Details about these properties are set out below:

  • 501 Airtech Parkway is a 500,000 square foot Class “A” single-tenant logistics warehouse facility built in 1999
  • 1451 Allpoints Court is a 533,520 square foot Class “A” single-tenant logistics warehouse facility built in 2009
  • Development land parcel is a 29.8 acre site adjacent to 1451 Allpoints Court, and can accommodate an expansion project of up to 585,000 square feet of GLA

All three properties are scheduled to close simultaneously on or about December 30, 2014, subject to customary closing conditions.

Location

These properties are all located in the Plainfield submarket of the greater Indianapolis industrial market, immediately adjacent to the Indianapolis International Airport, and 15km west of the downtown core of Indianapolis.

The City of Indianapolis is:

  • the  12th largest industrial market in the U.S.;
  • the 9th largest market for logistics uses;
  • strategically located for distribution throughout the US, within 1 day’s drive of 80% of the population in North America.

Indianapolis

Property Profiles

 

501 Airtech Parkway

1451 Allpoints Court

Development Land

Year Built

1999

2009

GLA (SqFt)

500,000

533,520

Office % of GLA

21%

7%

Occupancy

100%

100%

Clear Heights

28’

32’

Loading Type

Cross-dock

Cross-dock

Dock Doors

25

54 + 2 drive-in

Parking Spaces

678 car / 8 trailer

357 car / 54 trailer

Site Area

34.9ac

35.8ac

29.8ac

 

Leasing

The two income-producing properties are 100% leased to Ingram Micro (Moody’s rating Baa3) for a lease term of 10 years.
Granite is not responsible for the contents of this separate linked website:

Portfolio Purchase Price: US$68.75 million before transaction costs

Initial Cap Rate on Income-Producing Properties: 6.5%

Plainfield

July 30, 2013

On July 30, 2013, Granite announced its agreement to acquire an income producing property located in West Chester, Ohio. Granite’s funding for this acquisition will be from a combination of its existing line of credit and cash on hand.

Details about the property are set out below:

8741 Jacquemin Drive – West Chester, OH is a 601,065 square foot Class “A” single-tenant logistics / warehouse facility constructed in 2001. The property will be acquired at a total cost of approximately US$21 million before transaction costs. The acquisition is scheduled to close on or about August 20, 2013, subject to customary closing conditions.

Location

The property is well located within the Cincinnati, OH submarket of West Chester, 50km North-East of the Cincinnati International Airport and 30km North-East from the  downtown Cincinnati core. The property is within close proximity to major arterial interstate routes (I-71 East-West, I-74 East-West, and I-75 North-South) and a two hour drive from Louisville, Lexington, Columbus, and Indianapolis. I-75 is a main North-South route from Canada to Florida, connecting Detroit, Cincinnati, Knoxville, Atlanta and Tampa.
map_West-Chester
Property profile

  • Square feet: 601,065
  • Occupancy: 100%
  • Age: 12 years
  • Clear heights: 38’6”
  • Loading type: front-loading
  • Dock doors: 42 + 1 Drive in
  • Parking spaces: 450 employee + 87 trailer drops

Leasing

The property is 100% leased to one tenant with a lease term of 10 years.

Granite is not responsible for the contents of this separate linked website.

Financial

  • Purchase price: approximately US$21 million before transaction costs
  • In-going cap rate: 8.00%

WestChester01a

WestChester02

 


Related Press Releases

July 30, 2013
GRANITE REIT ANNOUNCES PROPERTY ACQUISITION IN THE UNITED STATES

August 9, 2013
Granite REIT Announces Closing of Property Acquisition in the United States

May 8, 2013


Portland_I-5
On May 8, 2013, Granite announced its agreement to acquire a majority interest in one income producing property located in Portland, Oregon and its acquisition of a majority interest in two development sites located in Louisville, Kentucky and Bethel, Pennsylvania.  Granite’s portion of the funding for these acquisitions is a combination of its existing line of credit, property-specific mortgage and construction financing and cash on hand.

Property specific details on each of the acquisitions are set out below.

 

18201 NE Portal Way, Portland, Oregon is a 264,984 square foot Class “A” multi-tenant logistics / warehouse facility constructed in 2008. The property will be acquired at a total cost of approximately US$21 million before transaction costs, with an equity ownership split between Granite (95%) and Dermody Properties (5%). The acquisition is scheduled to close on or before May 15, 2013. Dermody Properties will continue to be responsible for property management and leasing.

Location

The property is well located within the East Columbia submarket, 5 miles east of Portland International Airport, and 15 miles from the Port of Portland, with close proximity to major arterial interstate routes (I-84 East-West, I-205 North-South, and I-5 North-South). The I-5 is the main North-South route from Canada to Mexico, connecting Seattle, Portland, Sacramento, Los Angeles and San Diego.

Property profile

  • Square feet: 264,984
  • Occupancy: 100%
  • Age: 5 years
  • Clear heights: 30’ – 32’
  • Loading type: Rear-load
  • Dock doors: 42
  • Parking spaces: 313

Portland-1 Portland-2 Portland-Aerial2

Leasing

The property is 100% leased to four tenants with a weighted average lease term of 4.8 years. The current diversified tenant base includes:

Granite is not responsible for the contents of this separate linked website.

Financial

  • Purchase price: approximately US$21 million before transaction costs
  • In-going cap rate: 7.1%
  • It is expected the transaction will be funded by way of a first mortgage in the amount of US$12.6 million and Granite’s credit facility

 



825 Conestoga Parkway, Louisville, Kentucky (“KY”) is a 35.9 acre development site located at Settlers Point Business Park in Louisville, KY. The site is earmarked for a proposed development which will include a 624,000 square foot Class “A”, cross-docked, logistics / warehouse facility, and will be designed to allow for up to four separate users. The site is fully entitled – zoned light industrial and is pad-ready – allowing construction to begin upon building permit issuance. The project is proposed to be developed on a speculative basis at an estimated all-in cost (including land and building) of approximately US$26.8 million. Equity ownership in the project will be through a development joint venture between Granite (90%) and Dermody Properties (10%). To date the land has been acquired for a purchase price of US$6.2 million before transaction costs.

KY_I-65

Location

The property is a well located within the Bullitt County submarket, 15 miles south of Louisville city center, and 5 miles south-west of the Louisville International Airport (“LIA”).

The site runs adjacent to I-65 North-South with approximately 1800′ of frontage, and is within close proximity to I-64 East-West, and I-71 North-South. I-65 is the main route from Indiana to Alabama, connecting major US cities Indianapolis, Indiana, Nashville, Tennessee, and Birmingham, Alabama. The I-64 connects Louisville with port facilities on the eastern seaboard in Virginia.

Granite is not responsible for the contents of this separate linked website.

The main attraction is the site’s proximity to LIA – home to UPS’s global air hub.  The UPS Worldport Hub measures over 5.2 million square feet, and has the capability to process 416,000 packages an hour. This UPS facility was a significant factor in making LIA the 3rd busiest cargo airport in the US in 2012 (ranked 7th globally)[1].

Development profile (Pro Forma) – Anticipated start in 2013

  • Built area: Square feet 624,000
  • Occupancy: Speculative
  • Age: New build
  • Clear heights: 36’
  • Loading type: Cross-dock
  • Dock doors: 60
  • Parking spaces: 357

Financial

  • Land purchase price: US$6.2 million before transaction costs
  • Total project cost: estimated to be approximately US$26.8 million
  • Granite’s portion of the land purchase  was funded by way of  its credit facility

 


Granite is not responsible for the contents of this separate linked website.

[1] http://www.aci-na.org/sites/default/files/2012-top-50-na-airports.xls

Louisville-Aerial2 Louisville-Building-1_Rlw2


 

Berks Park 78, Bethel, Pennsylvania (“PA”) is an 89.2 acre site located on the western side of Berks Park 78 in Bethel Township, PA. The site is fully improved and located within a high quality business park. The property is also fully entitled and is zoned for 750,000 square feet of logistics / warehouse uses.

The site was acquired for a total price of US$7.8 million before transaction costs, and equity ownership in the project will be through a development joint venture between Granite REIT (90%) and Dermody Properties (10%). The acquisition was funded on a land-only basis and will be held in inventory for future build-to-suit opportunities or speculative development.

Location

The attraction for development is driven by the site’s proximity to the Northeastern US population base, as well as strong labor supply for distribution centers.

Berks_I-78-I-81_maps

The site is located approximately 125 miles west of New York City, New York and 85 miles west of Philadelphia, PA along the I-78 East-West, as well as 13 miles east of the I-81 North-South / I-78 East-West intersection.  The location provides logistical advantages as it has excellent access to these two major arterial routes.

Running from Harrisburg, PA into Lower Manhattan, I-78 East-West is a major throughway linking Pennsylvania, New Jersey and New York. The I-81 is a major North-South route along the eastern US – the northern terminus of the I-81 North-South is the Canadian border, where it connects with Highway 401, the southern terminus is at Interstate 40 in Dandridge, Tennessee.

Development profile (Pro Forma)

  • Buildable area: Square feet 750,000
  • Land inventory for future development

Financial

  • Land purchase price: US$7.8 million before transaction costs
  • Granite’s portion of the land purchase  was funded from cash on hand


Berks-2
  Berks-1a  Berks-3

 
 


Related Press Release

May 8, 2013
GRANITE REIT ANNOUNCES THREE PROPERTY ACQUISITIONS IN THE UNITED STATES

February 13, 2013

Recent Acquistions – Dermody Transaction

On February 13, 2013, Granite REIT acquired a 90% interest in two industrial buildings located in Logan, New Jersey and Savannah, Georgia.  The buildings total 713,040 square feet and were acquired for a total purchase price (100% interest) of U.S. $39.8 million, excluding acquisition costs.  The investment was completed through a joint venture with the vendor, Dermody Properties (see below) who has retained a 10% interest and will continue to be responsible for property management and leasing.

The following are the salient details of the investment:

2100 Centre Square Road, Logan, New Jersey

  • Square Feet: 365,760
  • Occupancy: 100%
  • Age: 4 years
  • Leased: Four tenants including UPS, Sears, HH Gregg Appliance, Brighton Best

Logan01a    Logan02a


101 Clyde Alexander Avenue, Savannah, Georgia

  • Square Feet: 347,280
  • Occupancy: 88.9%
  • Age: 4 years
  • Leased: Three tenants including Dole, Mitsui Soko, RBW Logistics

Savannah01a    Savannah02a

 

Financial Summary (Based on Granite’s 90% interest):

  • Purchase Price: approximately U.S. $36.5 million (including all transaction and due diligence costs)
  • In-going cap rate: 7.4%
  • The transaction was funded by way of a first mortgage in the amount of U.S. $21.5 million and Granite’s credit facility at an initial all in rate of less than 3.50% and cash on hand
  • Weighted Average Remaining Lease term: 3.7 years

 

About Dermody Properties

Dermody Properties is a privately held national industrial real estate development group, founded and headquartered in Reno, NV, with regional offices in Phoenix, AZ, Portland, OR, Philadelphia, PA and Chicago, IL. Over its 50-year history, the company has developed and leased more than 35 million square feet of high quality industrial/distribution facilities throughout the U.S., serving the distribution space needs of Fortune 500 companies and other large customers.  To learn more about Dermody Properties, visit www.Dermody.com.

 


Related Press Release

February 13, 2013
GRANITE REIT ANNOUNCES TWO PROPERTY ACQUISITIONS IN THE UNITED STATES