Generation Income Properties Announces Acquisition of a Single-Tenant Building Occupied by the United States Government in North Carolina

Rhea-AI Summary

Generation Income Properties (OTCQB:GIPR) has acquired a 5,800-square-foot single-tenant office building in North Carolina for $1.7 million, occupied by a Federal law enforcement agency. The transaction was funded through $1.27 million in debt from American Momentum Bank and $500,000 in preferred equity from a Joint Venture Partner. With an AA+ credit rating from Standard & Poor's, the tenant has 8 years remaining on the lease. This acquisition enhances GIP's portfolio to 80% investment-grade tenancy, reflecting its strategy to target strong tenants.

Positive

• Acquisition of a property occupied by a Federal law enforcement agency indicates strong tenant quality.
• Transaction increases investment-grade tenancy in the portfolio to approximately 80%.
• Funding structure allows for growth with a Joint Venture Partner while maintaining low debt levels.

Negative

• None.

TAMPA, FL / ACCESSWIRE / February 8, 2021 / Generation Income Properties, Inc. (OTCQB:GIPR) ("GIP" or the "Company") announced the acquisition of an approximately 5,800-square-foot, single-tenant office building in North Carolina occupied by a Federal law enforcement agency of the United States Government. The transaction was a forward commitment sale for a total consideration of approximately $1.7 million.

GIP funded the transaction with approximately $1.27 million of debt from American Momentum Bank and approximately $500,000 of preferred equity provided from a Joint Venture Partner. The United States Government has a credit rating of AA+ from Standard & Poor's and the tenant has approximately 8 years remaining on the primary lease term for the property.

David Sobelman, Chief Executive Officer of GIP, noted, "This transaction reflects GIPs continued ability to identify assets occupied by strong tenants. And, for this one in particular, GIP was able to commit to the asset prior to rent commencement allowing the developer a planned exit for their project. In addition, the use of the JV program for this acquisition gave GIP the ability to grow the investment-grade tenancy of the portfolio to approximately 80% and simultaneously provide the JV partner a market return."

About Generation Income Properties:
Generation Income Properties, Inc., located in Tampa, Florida, is an internally managed real estate investment company formed to acquire and own, directly and jointly, real estate investments focused on retail, office and industrial single-tenant properties located primarily in major United States cities, with an emphasis on the major coastal markets.

Additional information about Generation Income Properties, Inc. can be found at the Company's corporate website: www.gipreit.com.

Forward-Looking Statements:
This press release, whether or not expressly stated, may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. It reflects the company's expectations regarding future events and economic performance and are forward-looking in nature and, accordingly, are subject to risks and uncertainties. Such forward-looking statements include risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements which are, in some cases, beyond the Company's control which could have a material adverse effect on the company's business, financial condition, and results of operations. Some of these risks and uncertainties are identified in the company's most recent Annual Report on Form 1-K and its other filings with the SEC, which are available at www.sec.gov. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition, and results of operations. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

CONTACT:
GENERATION INCOME PROPERTIES
401 E Jackson St, Suite 3300, Tampa, FL 33602
(813) 448-1234

SOURCE: Generation Income Properties, Inc.

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FAQ

What is the acquisition announced by Generation Income Properties on February 8, 2021?

Generation Income Properties announced the acquisition of a 5,800-square-foot office building in North Carolina for $1.7 million, occupied by a Federal law enforcement agency.

How was the acquisition funded by GIPR?

The acquisition was funded with approximately $1.27 million of debt from American Momentum Bank and $500,000 of preferred equity from a Joint Venture Partner.

What is the significance of the tenant's credit rating in the recent GIPR acquisition?

The tenant has a credit rating of AA+ from Standard & Poor's, indicating a low risk of default, which enhances the security of the investment.

How does this acquisition impact GIPR's investment-grade tenancy?

This acquisition increases GIPR's investment-grade tenancy to approximately 80%, strengthening its portfolio quality.

What are the expected benefits of the GIPR acquisition announced in February 2021?

The acquisition is expected to provide long-term income stability and enhance the overall quality of Generation Income Properties' portfolio.