PlanMaestro Posted December 6, 2012 Author Share Posted December 6, 2012 Gramercy Capital Corp. Closes the Previously Announced Acquisition of a $485 Million Portfolio http://www.marketwatch.com/story/gramercy-capital-corp-closes-the-previously-announced-acquisition-of-a-485-million-portfolio-in-a-joint-venture-with-garrison-investment-group-2012-12-06 Link to comment Share on other sites More sharing options...
heth247 Posted December 6, 2012 Share Posted December 6, 2012 You just cannot slow him down... Plan :) Link to comment Share on other sites More sharing options...
PlanMaestro Posted December 6, 2012 Author Share Posted December 6, 2012 You just cannot slow him down... Plan :) A young man trying to conquer the world … :) Link to comment Share on other sites More sharing options...
PlanMaestro Posted December 8, 2012 Author Share Posted December 8, 2012 Bank Branches Sold in Portfolio Deal http://www.sfvbj.com/news/2012/dec/07/bank-branches-sold-portfolio-deal/ Four Valley-area buildings leased by Bank of America Corp. for branch locations have been sold as part of a larger 115-property portfolio sale worth $485 million. A joint venture of New York real estate investment trust Gramercy Capital Corp. and Garrison Investment Group purchased the properties from an affiliate of Kansas City-based KBS Real Estate Investment Trust Inc. The company said 81 percent of the properties are leased to Bank of America as branch locations. Thirty-nine of the properties involved in the sale are in California. Locally, the properties are located at 839 Palmdale Blvd., Palmdale; 5025 Lankershim Blvd. in North Hollywood; 345 N. Brand Blvd. in Glendale; and 10300 Sepulveda Blvd. in Mission Hills. Gramercy said it will split the portfolio in two, retaining 67 of the core properties and placing the other 48 in a held-for-sale portfolio – mostly properties in secondary markets and non-core, multitenant buildings. Operations at the branches should not be affected, as Bank of America holds long-term leases at the locations. Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 29, 2013 Author Share Posted January 29, 2013 Demuth's Best Trade for 2013: Grammercy Capital. http://www.bloomberg.com/video/demuth-s-best-trade-for-2013-grammercy-capital-hDdbnRHLRFS8AY5di0FrkA.html Some pantalones to go on a TV show with that beard … and to recommend GKK hehehe. No clue who he is, but here is his 2012 report with a short GKK thesis. http://www.scribd.com/doc/120684225/Rangeley-Capital-December-2012-Investment-Report Link to comment Share on other sites More sharing options...
heth247 Posted January 29, 2013 Share Posted January 29, 2013 He did a SA article in Dec - http://seekingalpha.com/article/1076551-our-best-investment-idea-for-2013-gramercy-capital He is a 13G holder of the preferred. But he indicated in some of his posts at SA that he owns more common than preferred. Link to comment Share on other sites More sharing options...
Olmsted Posted January 31, 2013 Share Posted January 31, 2013 CDO management rights and bonds sold. Kept equity tranches. Rights: 9.9m+14m. Bonds: 32m. http://m.seekingalpha.com/news-article/5474171-gramercy-capital-corp-announces-an-agreement-to-sell-its-collateral-management-agreements-for-its-collateralized-debt-obligations-cdos-to-cwcapital-and-retain-the-equity-in-its-cdos Overall a reasonable deal. Looks like they had to sell bonds at a discount to make it happen. Upside optionality from the equity is still there. Simplifies the business, can trim expenses Link to comment Share on other sites More sharing options...
heth247 Posted January 31, 2013 Share Posted January 31, 2013 It is actually the best outcome I had hoped, especially the "free option" on the CDOs, which could be big upside in the future. Link to comment Share on other sites More sharing options...
heth247 Posted February 1, 2013 Share Posted February 1, 2013 One thing I did not understand is what took them so long to reach such a deal. Maybe they tried to sell the equity interest but cannot find a buyer with a right price... Link to comment Share on other sites More sharing options...
Olmsted Posted February 1, 2013 Share Posted February 1, 2013 It is actually the best outcome I had hoped, especially the "free option" on the CDOs, which could be big upside in the future. I agree, it was a good deal for the company. For my own selfish, personal profit though - I wish they had sold the equity even if the price wasn't right. The reason is, as Plan pointed out on twitter, there's no price discovery. Some of us may think there is some serious option value in the equity tranches, but until the time gets close to wind up the CDOs and there is some clarity about whether anything is left for equity, GKK's ownership of the equity tranches will be accorded precisely zero value by the market. By then, if current management keeps executing, the value of that option will have become a smaller and smaller part of the overall value of that company. Again, if management keeps executing, the turnaround/distressed/value guys will have long before sold their shares to dividend investors after the shares appreciated. I, for one, doubt I'll be around to experience any recovery from the CDOs. I think there are still some options. In a wildly bull case, distributions could start sooner rather than later if some key loans heal or properties are sold for a surprising price. Or, it could become evident part-way through a wind-up that there will be some value left; then GKK could sell. Or, they could get creative with structure. If the market is according no value to the CDO equity as part of GKK, why not do a transaction to allow the market to value it separately? A spinoff of the CDO interest might be too cumbersome (extra overhead) - but I would love it if they distributed a tracking stock or a contingent value right to current shareholders. That way, current shareholders could opt in or out of the CDO equity. It would allow shareholders to monetize it themselves by choosing to sell. It would also allow the market to price its value. Link to comment Share on other sites More sharing options...
heth247 Posted February 1, 2013 Share Posted February 1, 2013 If 2005 + 2006 recover, they might get as mush as $3+ per share from the equity trench. Even Gordon grows the company such that share price rise to $10, that's still significant money. And I doubt at this point anyone would be willing to pay more than $0.5/share for the equity interest. So even they sell it for $25M, that's just peanut money and probably won't make any difference. Actually, my biggest fear was that somebody offer $1/share for the CDOs, and they might sell it right away. Glad that Gordon kept his head cool and made the right decision. Link to comment Share on other sites More sharing options...
PlanMaestro Posted February 1, 2013 Author Share Posted February 1, 2013 Actually, my biggest fear was that somebody offer $1/share for the CDOs, and they might sell it right away. Glad that Gordon kept his head cool and made the right decision. That was my biggest fear too. Link to comment Share on other sites More sharing options...
Olmsted Posted February 1, 2013 Share Posted February 1, 2013 If 2005 + 2006 recover, they might get as mush as $3+ per share from the equity trench. Even Gordon grows the company such that share price rise to $10, that's still significant money. And I doubt at this point anyone would be willing to pay more than $0.5/share for the equity interest. So even they sell it for $25M, that's just peanut money and probably won't make any difference. Actually, my biggest fear was that somebody offer $1/share for the CDOs, and they might sell it right away. Glad that Gordon kept his head cool and made the right decision. I hear you both, it is a smart deal for the company. My only observation is that well before the potential $3 is realized, the company might be priced where value guys are out. Link to comment Share on other sites More sharing options...
heth247 Posted February 1, 2013 Share Posted February 1, 2013 I think/hope this deal might actually keep value guys in for longer. ;) Link to comment Share on other sites More sharing options...
Olmsted Posted February 1, 2013 Share Posted February 1, 2013 I think/hope this deal might actually keep value guys in for longer. ;) Good point. Either way, it's a good problem to have! Link to comment Share on other sites More sharing options...
Olmsted Posted February 13, 2013 Share Posted February 13, 2013 http://seekingalpha.com/article/1165551-our-best-investment-idea-for-2013-gramercy-capital-part-ii I think the author is a bit optimistic - one should use caution extrapolating a share price from comps in an overheated sector. With that caveat, it's a good article. http://static.cdn-seekingalpha.com/uploads/2013/2/7/957061-13602670631219497-Chris-DeMuth-Jr- http://static.cdn-seekingalpha.com/uploads/2013/2/7/957061-13602670932328045-Chris-DeMuth-Jr- Link to comment Share on other sites More sharing options...
Olmsted Posted March 12, 2013 Share Posted March 12, 2013 NEW YORK--(BUSINESS WIRE)-- Gramercy Capital Corp. (NYSE: GKK) announced today that it closed on the acquisition of an approximately 600,000 square foot class A industrial building located in Olive Branch, Mississippi, in an all-cash transaction for a purchase price of approximately $24.65 million. The building is 100% leased to a single tenant through December 31, 2022 and includes an adjacent 13.8 acre land parcel with capacity for an additional 250,000 square foot building. http://ir.gramercycapitalcorp.com/releasedetail.cfm?ReleaseID=747438 No hints on cap rate. Curious who the tenant is. Did a quick Google Earth Survey. Lots of distro centers in that town. Sears has 2, actually - but the sizes don't match (as far as I can tell). Link to comment Share on other sites More sharing options...
heth247 Posted March 12, 2013 Share Posted March 12, 2013 Don't know why market responded negatively... Maybe it has run up too much too fast, due for a pull back. Btw, I think some of the value guys sold out. There used to be a Chinese and a Korean individual shareholders who own 9M and 7.5M shares each. I don't see their 13Gs for 2013. This probably also explains why the stock has more liquidity now in terms of its daily volume. Link to comment Share on other sites More sharing options...
Olmsted Posted March 13, 2013 Share Posted March 13, 2013 I've lightened up a little too, but big picture, I still think it is early. Link to comment Share on other sites More sharing options...
PlanMaestro Posted March 14, 2013 Author Share Posted March 14, 2013 A private investor has acquired the retail bank branch at 2200 Aloma Ave. in Winter Park, FL from Gramercy Capital Corp. for $2.3 million, or about $651 per square foot. (what?) http://www.costar.com/News/Article/Regions-Bank-Branch-Sells-for-$32M/146620 Link to comment Share on other sites More sharing options...
Olmsted Posted March 15, 2013 Share Posted March 15, 2013 Some more details on their latest purchase: Gramercy Capital Corp. has acquired Hacks Cross Logistics Center Building 1 in Olive Branch for $24.65 million from Hillwood Investment Properties... Dallas-based Hillwood Investment Properties bought the DeSoto County building for $13.5 million in February 2012. Built in 1995, the property is situated on 66 acres at 9105 Hacks Cross Road, at the southwest corner of Stateline Road. It has 30-foot clear height, cross dock configuration, ESFR fire sprinkler systems and 87 9-foot-by-10-foot dock doors. The industrial facility is 100 percent leased to Philadelphia-based value retailer Five Below Inc. through Dec. 31, 2022. The building also includes an adjacent 13.8-acre land parcel with capacity for an additional 250,000-square-foot building. http://www.memphisdailynews.com/news/2013/mar/15/gramercy-capital-acquires-25-million-distribution-facility/print Link to comment Share on other sites More sharing options...
BargainValueHunter Posted March 19, 2013 Share Posted March 19, 2013 http://www.reuters.com/article/2013/03/19/ny-gramercy-capital-idUSnBw88tsbma+100+BSW20130319 Announces Exit from Commercial Real Estate Finance Business Announces Name Change to Gramercy Property Trust Link to comment Share on other sites More sharing options...
heth247 Posted March 19, 2013 Share Posted March 19, 2013 Their new business plan update presentation just got put out. Very excited about their pipeline of investment. However, CDO equity value estimated for $25MM by 2018...? Link to comment Share on other sites More sharing options...
heth247 Posted March 19, 2013 Share Posted March 19, 2013 How can they sell Whiteface and Makalei to CDOs? Aren't their CDOs past reinvestment period? Link to comment Share on other sites More sharing options...
Olmsted Posted April 2, 2013 Share Posted April 2, 2013 Management continues to put cash to work. Another industrial building and logistics building: Gramercy Capital Corp. (NYSE: GKK) announced today that it recently closed on two property acquisitions. The first is an approximately 342,000 square foot industrial building located in Garland, Texas, for a purchase price of approximately $10.70 million in an all-cash transaction. The building is 100% leased to a single tenant through 2032. The second is a 101 dock door truck terminal on a 16.25-acre site located two miles from I-95 in East Brunswick, New Jersey, for a purchase price of approximately $11.65 million in an all-cash transaction. The terminal is 100% leased to a single tenant through 2019. http://ir.gramercycapitalcorp.com/releasedetail.cfm?ReleaseID=753566 Link to comment Share on other sites More sharing options...
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