May 8, 2013

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.


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


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.


  • 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.



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


  • 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.


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.


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.


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


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

  Berks-1a  Berks-3


Related Press Release

May 8, 2013