October 18, 2019 – Colliers International announces that Generation Income Properties, Inc. (OTCQB: GIPR), headquartered in Tampa, has acquired two buildings in Norfolk that comprise 106,621 square feet of office space with a value of $18.9 million through an UPREIT transaction.
The portfolio includes the GSA NAVSEA building at 2510 Walmer Avenue, a 71,774-square-foot office building primarily occupied by the General Services Administration as well as Maersk, an international shipping company. In addition, the transaction included a 34,847-square-foot office building in the Riverside Corporate Center at 130 Corporate Boulevard that is solely occupied by the PRA Group, Inc.
President and Chief Executive Office of GIPR David Sobelman stated, “With the addition of these two assets, we’ve more than doubled the value of assets under management and added two high-quality properties to our portfolio. Additionally, we had the opportunity to work with true professionals on the other side of transaction. By the contributor having the confidence in the long-term outlook of GIPR, we were able to structure a tax-deferred transaction, an UPREIT, for the owners that allowed them to realize the value of their assets and provide them an opportunity to not incur immediate capital gain taxes through the traditional sale process. We are very happy with the outcome and look forward to future growth in our portfolio.”
The contributor of the two assets was Robinson Development Group, a Virginia Beach-based development and investment firm with assets throughout Virginia. The contributor’s broker was Colliers International’s team including J. Scott Adams, president of Colliers | Virginia; Patrick Mugler, executive vice president; Gray Randolph, executive vice president; and Will Bradley, senior vice president. Colliers International has also been retained for property management on both assets.
Umbrella Partnership Real Estate Investment Trust (UPREIT) refers to an entity structure that allows property owners to convert their ownership of one or more of their real estate assets into an interest which is, immediately, or can ultimately be converted into, a public security. In the basic UPREIT structure the REIT properties are acquired and owned directly or indirectly by its umbrella partnership. Therefore, Generation Income Properties, LP, is the managing partner of the UPREIT property.
Generation Income Properties, Inc., located in Tampa, Florida, is an internally managed real estate investment trust formed to acquire and own, directly and jointly, real estate investments focused on retail, office and industrial net lease properties located primarily in major United States cities, with an emphasis on the major coastal markets. It invests primarily in freestanding, single-tenant commercial retail, office and industrial properties. Additional information about Generation Income Properties, Inc. can be found at www.gipreit.com.
About Colliers International Group Inc.
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at colliers.com, follow us on Twitter: @Colliers and LinkedIn.
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