GCP Acquires $53 Million Industrial Portfolio

GCP Acquires $53 Million Industrial Portfolio

Purchase expands GCP’s metro Atlanta holdings to 1.2 million square feet

ATLANTA (April 12, 2016) – Birmingham, Ala.-based Graham Commercial Properties (GCP) purchased a three-property portfolio of industrial buildings for $53.25 million, expanding the company’s Atlanta holdings fivefold. The acquisition is part of a Southeast expansion GCP has in the works over the next 12 to 18 months. The new Atlanta portfolio comprises six class A, bulk distribution buildings totaling 979,650 square feet. The seller in the transaction was Boston-based TA Realty.

The portfolio includes:

  • Progress Center – A two-building, 451,200-square-foot property located at 2200 and 2225 Cedars Road in Lawrenceville, Ga.;
  • Air Commerce Center – A two-building, 268,400-square-foot property at 4900 St. Joe Blvd. in College Park, Ga.; and
  • North Atlanta Distribution Center – A two-building, 260,050-square-foot industrial property located at 5065 and 5075 Buford Highway in Norcross, Ga.

“These properties are located in three of Atlanta’s high-quality industrial submarkets and are long-term holds for us,” said GCP President Gardner Lee. “We anticipate doubling our portfolio over the next 12-18 months in high growth Southeast cities, so look for more from us in Atlanta and beyond.”

The buildings feature 24- to 30-foot clear ceiling heights. The combined occupancy was 92 percent at the time of closing. Notable tenants include Innotrac, Zodiac Services, Wurth Wood, and Carrier. With this acquisition, GCP now controls 1.2 million square feet of industrial space in the Atlanta market.

CBRE represented the seller in the transaction. GCP provided in-house representation for the transaction. This acquisition was made possible due to substantial new equity investment in the company that will help fuel GCP’s future Southeast growth. Debt for the transaction was provided by Wells Fargo Bank.

GCP currently controls approximately 5.5 million square feet of industrial space in Alabama, Florida, Georgia and North Carolina. Created in 2013 by seasoned leaders from Graham & Co., GCP has rapidly expanded, entering the Charlotte and Atlanta markets in the past year. The company’s short-term plans are to focus on strategic acquisitions and build-to-suit developments in Orlando, Tampa, Atlanta, Nashville and Charlotte.

“We’re looking to achieve above average, long-term results for our investors,” Lee said. “We do that by focusing on high growth Sunbelt markets where we can get increased returns over a long hold period. These are regional distribution hubs with fast-growing consumer markets where we can capitalize on the growth in e-commerce.”

About GCP
Birmingham, Ala.-based GCP is a private real estate portfolio and management company specializing in midsize bulk distribution properties across the Sunbelt. GCP looks for opportunities to create long-term, above-average returns for investors in industrial markets experiencing growth in e-commerce and logistics. For more information, please visit www.gcprei.com.