Boston, MA 08/21/2014 (wallstreetpr) – Real Estate is growing with a fast pace now; hence, most of the companies that have real estate as some or the entire portion of their business are looking to expand. The latest example of it is Gramercy Property Trust Inc (NYSE:GPT). According to reports, the company has closed an acquisition deal of a huge 187,000 square dry warehouse and foot cold storage facility in Arlington Heights, Illinois.
Why Chicago IL:
The two sites are attached to each other and located at a place that is ideal for business expansion. These buildings are 100% leased to a specialty food distributor and importer. The guarantee for the lease has been given by the parent company of the tenant. According to reports, the parent company is a well-known name in broad line food distribution field. GPT expects to have approximate operating income for the first-year close to $1.5 million (8.4% annualized straight-line cap rate and 8.1% initial cap rate). Gramercy Property Trust Inc (NYSE:GPT) has acquired this cold storage facility in as much as $19.1 million.
It is looking forward to expanding in the different locations, markets and regions to take the advantage of the local economy. For the same objective, Gramercy Property Trust Inc (NYSE:GPT) is now looking for other suitable locations to expand its business line. It is a completely integrated and self-managed commercial real estate investment firm. The main objective of GPT is to acquire and manage those official and industrial properties that can produce regular and long term income. The company uses leasing as part of its expansion procedure across the United States.
Gramercy Property Trust Inc (NYSE:GPT) had done its homework in Chicago location before it took any final decision about its current acquisition deal. It aims to transform this newly acquired property into a profit making site in near future and for the same objective, it will look to change its infrastructure in a few months time.