Benzinga | Nov 3, 2021 09:20AM EDT

Generation Income Properties Announces Agreement For Pending $4.7M Transaction

Generation Income Properties, Inc. (NASDAQ:GIPR) ("GIP" or the "Company") announced the signing of a definitive Purchase and Sale Agreement under which the Company will acquire an approximately 30,000 SF single-tenant retail building in Grand Junction, Colorado for total consideration of approximately $4.7 million. The building is occupied by Best Buy (BBY), which currently holds an investment grade credit rating of BBB on the Standard & Poor's scale. There is approximately 5.5 years remaining on its current lease term, with the option for the tenant to renew for one (1) five (5) - year period, and annualized base rental income of $353,000.

The Company expects to fund the acquisition with approximately 50% cash and 50% debt. The transaction is subject to customary closing conditions and due diligence. David Sobelman, President and Chief Executive Officer of GIP, noted, "We are excited to have the opportunity to add another investment-grade credit tenant to our portfolio in a strong growth market at an attractive cap rate, as well as diversify our tenant pool."