GCP Acquires Property Management Group

GCP Acquires Property Management Group

For Immediate Release

GCP Completes $21 Million Acquisition and Acquires Property Management Business of Graham & Company

(Birmingham, Alabama) – Birmingham-based Graham Commercial Properties (GCP) has acquired the Interstate South Commerce Center in Jacksonville, Florida. The 25-acre site comprised of six flex space buildings was purchased for $21 million.

Established in late 2013, GCP is a real estate holding company formed in connection with the consolidation of more than two-dozen long-standing industrial real estate partnerships. GCP is focused on the acquisition, development and management of industrial properties. The company was created when Mike and Steve Graham, the sponsors of the original partnerships and the owners of Graham & Company, tasked Gardner Lee, now President of GCP, and John Hagefstration, now the Executive Vice-President and General Counsel of GCP, with creating a new ownership structure that would reduce investor risk, ensure more consistent returns on investment and make it easier for the company to attract new investment capital and grow well beyond the current holdings.

“The decision was simple. We needed to evolve and grow the investment and property management arm of our business without altering the core leasing and sales services our agents have always delivered. GCP has done just that,” said Mike Graham.

Under the new streamlined ownership structure, GCP reduces overall investment risk through diversification, debt management and vertical integration of property management services. The Grahams continue as co-chairs of the new holding company.

“Creating this new company was no easy feat,” said John Hagefstration. He noted that “there were obviously many challenges to overcome in forming a new holding company, but the investors saw the benefits the new structure would provide, and have been extremely pleased with the progress we have made in the first year of operation.”

In addition to the acquisition of the Interstate South project, GCP formed GCP Management Services, LLC to integrate the property management and accounting divisions of Graham & Company into GCP on January 1, 2015.

GCP will continue to provide the outstanding property management services for which Graham & Company is known among its investors and also among many third-party property owners. GCP Management Services will operate out of offices in Birmingham, Huntsville, Montgomery and Mobile in Alabama as well as Jacksonville and the Gulf Coast of Florida; GCP looks to grow its footprint across the southeastern United States.

“We thought that forming GCP Management Services was a ‘win-win’ strategy for all concerned” said Steve Graham. He added, “From this new larger platform, GCP will be able to provide even better service to our existing customers and to the many new properties we expect GCP to acquire in the near future. This permits our outstanding team of brokers and agents at Graham & Company to focus exclusively on what they do best – lease and sell properties – while also allowing Graham & Company to continue to provide development and appraisal services.”

The recent acquisition in Jacksonville is expected to be the first of many as GCP grows the company by leveraging existing relationships and proven operational capabilities.

“We’ve always been a huge fan of the Alabama and Florida industrial markets. But we’re ready to grow and ready to look at investment opportunities across the entire Sunbelt region of the U.S.” said GCP President Gardner Lee.

After this recent transaction, GCP now owns nearly 5 million square feet of industrial space in the portfolio. GCP Management Services will manage in excess of 11 million square feet of space and will be one of the largest property management companies in Alabama.

GCP is headquartered in Birmingham, AL, and employs 43 people across Alabama offices located in Huntsville, Montgomery, and Mobile and Florida offices located in Jacksonville and the Gulf Coast.