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Generation Income Properties (Nasdaq: GIPR) Completes Acquisition of $42 Million, Thirteen (13) Property Portfolio
TAMPA, FL / ACCESSWIRE / August 14, 2023 / Generation Income Properties, Inc. (NASDAQ:GIPR) ("GIPR" or the "Company") announced the closing of a 13-property
About this update from Generation Income Properties Inc.
[{"type":"text","content":"TAMPA, FL / ACCESSWIRE / August 14, 2023 / Generation Income Properties, Inc. (NASDAQ:GIPR) (\"GIPR\" or the \"Company\") announced the closing of a 13-property portfolio for total consideration of $42 million on August 10, 2023. The portfolio consists of eleven (11) retail properties and two (2) office properties, and approximately 76% of the annualized base rent attributable to the portfolio is derived from tenants who have (or whose parent company has) an investment grade credit rating from a recognized credit rating agency of \"BBB-\" or better.The portfolio has a weighted average remaining lease term of approximately 5.6 years, is approximately 202,000 square feet and 100% occupied. The transaction increases GIPR's geographic footprint from eight (8) to thirteen (13) states and increases the total number of properties owned to twenty-six (26), including one property owned in a tenant-in-common structure.The purchase price for the portfolio was $42 million, excluding estimated transaction costs and expenses of $1.6 million, consisting of $30 million paid in cash and $12 million paid in shares of a newly issued series of preferred stock of GIPR designated as \"Series A Redeemable Preferred Stock.\" The cash portion of the purchase price was financed with a combination of cash on hand, a new $21.0 million secured debt facility and a $12 million preferred equity investment in a special purpose subsidiary of GIPR's operating partnership. The preferred equity investment was led by real estate private equity firm, Loci Capital. Industry veteran and Loci's Head of Capital Markets, Garrett Francis noted, \"We've been extremely impressed with Generation Income Properties throughout the investment process,\" and added, \"We hope that this first investment will mark the beginning of a long-term relationship with GIPR.\"\"We believe that this acquisition showcases to the market our ability to identify accretive acquisition opportunities and consummate larger transactions regardless of wider market dislocations. We believe that our patient and disciplined approach to acquisitions over the past year positioned us to take advantage of this opportunity when presented, and the portfolio makeup fits our investment thesis nicely. We look forward to continuing to show the market our ability to creatively grow, identify additional acquisition op...