Gramercy launches e-commerce-focused warehouse venture

Gramercy Property Trust has launched a new joint venture to acquire, own and manage class A distribution centers leased to leading e-commerce tenants on long-term leases across the United States.

The company is in discussions with several institutional capital partners and has reached an agreement with a sovereign investor to anchor the joint venture.

The company expects to contribute between 25 percent and 50 percent of the equity to the venture, estimated to be between $64 million and $128 million at target leverage levels. Gramercy Property Trust expects to finance the initial acquisition with 55 percent to 60 percent property-level mortgage debt.

The venture’s first acquisition is a forward purchase contract for $642 million. The portfolio comprises seven newly constructed class A bulk distribution properties totaling 6 million square feet.

Each building will be 100 percent leased to a leading e-commerce company. Distribution facilities have been th