LOS ANGELES — Gramercy Property Trust and TPG Real Estate have formed Strategic Office Partners, a platform that will acquire single-tenant office assets in high-growth U.S. metro regions. The platform’s inaugural purchase was a six-property office portfolio valued at $187.5 million.
The portfolio contains a total of 1 million square feet of single-tenant, net lease office assets in metro Los Angeles, San Francisco Bay and San Diego. It also includes assets in Nashville and Minneapolis.
The buildings have an average tenant tenure of more than 11 years. Half of the assets have been occupied by the original tenant since the buildings were constructed. The weighted average remaining lease term was 3.6 years at closing.
Gramercy and TPG committed $400 million to the new venture and secured a $200 million non-recourse credit facility from Morgan Stanley. Strategic Office Partners plans to buy up to $1 billion in assets over a three-year period.