Griffin & Signature to Merge into $3B Company

Griffin Capital Corporation announced that Griffin Capital Essential Asset REIT, Inc. ("GCEAR") had entered into a merger agreement with Signature Office REIT, under which Signature will merge with GCEAR in a stock-for-stock deal that creates an approximately $3 billion REIT with a combined 15.2 million square feet of office and industrial assets. The merger was unanimously approved by each REIT's respective Board of Directors, but is conditioned on formal approval by Signature shareholders, receipt of required regulatory approvals and other customary closing conditions, and is expected to be completed during the first half of 2015.

Commenting on the merger, Kevin Shields, Griffin Capital's Chairman and Chief Executive Officer stated, "As we look forward to the next phase of our lifecycle, we believe the additional scale, diversity and operating efficiencies that our combined portfolios will garner is paramount in driving additional stockholder value in the future. Earlier this year we sold all of the remaining capital stock in our follow-on offering, and once we fully invest this equity, we expect our total capitalization to exceed $3 billion upon stabilization."

Michael Escalante, Griffin Capital's Chief Investment Officer added, "We look forward to having Signature shareholders standing shoulder-to-shoulder with GCEAR and its management team, which has invested over $26 million of its own capital in GCEAR. We are excited about this opportunity and, in our opinion, a ‘win-win' scenario was engendered by the understanding that together we can accomplish more than we can apart."

Eastdil Secured represented Signature in the deal, and Houlihan Lokey acted as financial advisors to Signature. Robert A. Stanger & Co. provided GCEAR's board of directors with a fairness opinion for the transaction, according to a CoStar report.

For more news and information visit Blumberg Capital Partners.

Griffin Capital Picks Up $521.5M Office Portfolio

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.