EL SEGUNDO, CA—Griffin Capital Corporation’s Griffin Capital Net Lease REIT, Inc., has acquired an approximately 70,100 square-foot, Class A office building located in Renton, WA. for $12 million ($171 per square foot). The Property is 100% leased to The Boeing Company and utilized as Boeing Capital Corporation’s global headquarters. The Boeing Company (NYSE:BA) is one of the world’s leading aerospace and defense companies, one of thirty corporations comprising the Dow Jones Industrial Average and ranked 39th among the ‘Fortune 500′ list of America’s largest corporations in 2012. Boeing Capital Corporation is a wholly-owned subsidiary of The Boeing Company that facilitates financing of the company’s products for its many airline clients.
The property is adjacent to many key Boeing facilities including, the Longacres Campus, Boeing Airfield and its 737 Assembly Plant. In particular, the adjacency to the Boeing Longacres Campus, which is the global headquarters location for Boeing Commercial Airplanes, was a key driver for Boeing Capital’s decision to locate its global headquarters at the property. Boeing Capital Corporation has been headquartered at the Property since 1997 when the subsidiary was acquired through a merger with McDonnell Douglas. During its tenancy, Boeing has expended considerable capital improving the Property, including a new roof system and parking area upgrades.
“We are pleased to acquire another Seattle area asset at an attractive 7.80% going-in capitalization rate1 and price per square foot that is well-below replacement cost,” said Louis Sohn, Griffin Capital’s Senior Vice President of Acquisitions. “Given the tenant’s 15-year history at the location, coupled with the proximity to many key Boeing facilities, we believe Boeing Capital Corporation will continue to find the Property attractive as its global headquarters for the foreseeable future.”
“This acquisition represents the fourth of our 16-property portfolio 100% leased to a DJIA component company and increases to nearly 75% the percentage of our REIT’s net operating income generated by investment-grade rated tenants,” added Michael Escalante, Griffin Capital’s Chief Investment Officer. “Our high-grade cash flow coupled with an average remaining lease duration of over 8.5 years allows for a reliable stream of high-quality income for the REIT for the next several years.”