Case Studies.Portfolio Acquisitions
Columbia Property Trust.
Portfolio acquisitions enabled GRT to scale its business and build strategic partnerships with capital providers while securing durable cash flows from essential assets
Columbia Property Trust 18-Asset Portfolio
1 Predominantly single-tenant office.
- Challenge: GRT identified and intended to close on a $500mm+ portfolio acquisition. However, given the REIT’s size in 2013, it was challenging to secure adequate funding to close on a transaction of this size
- Resolution: By utilizing the strength of its existing relationships with lenders and focusing on acquiring a portfolio that consisted of high-quality, predominantly single-tenant assets, GRT was able to obtain reliable financing sources to close on the transaction
- Key Bank, N.A. provided a $300mm term loan, of which $282mm was initially drawn and the remaining $18mm was held back for specific future releasing costs
- The balance of the acquisition was funded with $250mm of preferred equity provided by an affiliate of Starwood Property Trust, which was paid off in 24 months
- GRT also identified and sold three assets to maintain a sufficient level of liquidity
- Benefits: GRT successfully acquired the 18-asset, ~4 million SF office portfolio that included national and regional headquarters, primary research & development facilities, and key servicing centers
- The acquisition nearly doubled GRT’s holdings
- Over 80% of the portfolio’s operating income generated from investment grade tenants, or tenants whose parent companies have investment grade ratings, such as Anthem, United Healthcare, and General Electric Company
- Transaction marked the onset of a mutually beneficial partnership with both Key Bank and Starwood Property Trust