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