EL SEGUNDO, CA—Griffin Capital Corp. says its Griffin Capital Net Lease REIT, Inc., has acquired a 157,000 square-foot, Class A office building located in Greenwood Village, Colorado for $27 million. The Property is 100% leased to Comcast Cable Holdings, LLC, a wholly-owned subsidiary of Comcast Corporation pursuant to a triple-net lease with an approximate nine-year remaining term. Comcast Corporation is one of the world’s leading media and entertainment.
Situated adjacent to the Denver Technological Center, the Property was originally developed in 1980 and substantially renovated in 1998. The extensive renovation features many specialized and above-standard improvements including redundant back-up power systems and HVAC equipment, as well as a five-level, 550-stall shared parking structure.
The parking garage is located on an adjacent parcel that was sold separately and simultaneously with another office building. To ensure the right to use the parking facility in perpetuity, Griffin Capital negotiated and executed a reciprocal parking easement allowing for the use of approximately one-half of the stalls in the parking garage.
“Given the investment grade credit quality of the tenant and substantial remaining lease duration, we are pleased to have acquired this asset at a favorable going-in capitalization rate of 8.06%,” said Louis Sohn, Griffin Capital’s Senior Vice President of Acquisitions.
“Further, with 3.3% average annual net rental rate increases, the property is positioned to both continue to deliver superior returns and provide attractive NOI growth for the entire remaining duration of the lease.”
“With this acquisition, the Griffin Capital Net Lease REIT now has a total capitalization approaching $400 million and approximately 72% of its net operating income derived from or guaranteed by investment-grade rated entities,” added Michael Escalante, Griffin Capital’s Chief Investment Officer. “This acquisition provides a great start to 2013 as we look toward building on the acquisition momentum we experienced in 2012.”
Griffin Capital Net Lease REIT, Inc. is a publicly registered non-traded REIT with a portfolio that currently includes 15 office and industrial distribution properties totaling approximately 3.41 million rentable square feet and total capitalization in excess of $380 million. Griffin Capital Corporation is a privately-owned real estate company headquartered in Los Angeles.