El Segundo, CA-based Griffin Capital Corporation, on behalf of Griffin Capital Essential Asset REIT, Inc., announced this week that it had acquired an 18 building office portfolio for $521.5 million, bringing the REIT to over $1.3 billion in total capitalization. Griffin Capital purchased the portfolio from Atlanta-based Columbia Property Trust, which was represented by CBRE, while Barclays served as financial advisor for Griffin Capital. Financing for the acquisition was provided by a $300 million term loan led by Key Bank, of which $282 million was initially drawn and the remaining $18 million held back for future specific releasing costs.
"We have been very proactive in repositioning our portfolio with a focused market strategy to invest in premier office properties in growing markets with solid fundamentals," said Nelson Mills, President, Chief Executive Officer, and Director of Columbia Property Trust. "This transaction substantially increases our concentration in our top 10 markets, reduces our exposure to suburban markets and raises our percentage of multi-tenant properties.
The portfolio includes the following assets:
ATLANTA: 2500 Windy Ridge, 4100, 4200 & 4300 Wildwood
CINCINNATI: 4241 Irwin Simpson Road and 8990 Duke Boulevard
COLUMBUS: Chase Center Columbus and Sterling Commerce Center I and IV
DALLAS: 4300 Centreway Place and One MacArthur Ridge
DETROIT: 333 & 777 Republic Drive
INDIANAPOLIS: College Park Plaza
MILWAUKEE: 11200 W. Parkland Ave.
NASHVILLE: One Century Place
NEW JERSEY: Eagle Rock Executive Office Center IV
PHILADELPHIA: 1200 Morris Drive
SEATTLE: 15815 25th Avenue West and 16201 25th Avenue West
ST. LOUIS: 13655 Riverport Drive
Major tenants include Coca Cola Refreshments USA, General Electric Company, IBM, JP Morgan Chase, Aetna Life Insurance Company, Comcast Corporation, WellPoint and Wells Fargo Bank. Griffin Capital's chief investment officer Michael Escalante said the strategy behind the Essential Asset REIT is to own properties that serve as "essential assets" for the tenant, such as national and regional headquarters buildings, primary research & development facilities, and key business servicing centers, according to a CoStar report.
"With over 80% of the rents paid by investment grade-rated companies or corporate guarantors, and the vast majority of the buildings leased to iconic, blue chip1 tenants, this is an ideal fit for Essential Asset REIT," said Kevin Shields, Griffin Capital's Chairman and Chief Executive Officer in a statement. "With this transaction, this REIT almost doubles in size, but far more important is the high quality assets and increased diversification this portfolio provides. Essential Asset REIT now includes tenants representing 33% of the DOW 30."
For more news and information visit Blumberg Capital Partners.
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