SYLMAR, CA-GC Net Lease REIT Inc., a non-traded REIT sponsoredby El Segundo-based Griffin Capital Corp., has acquired a35,785-square-foot office building at 12669 Encinitas Blvd. herethat is fully leased by ITT Educational Services Inc. GC paid $7.8million for the property and acquired it at a cap rate of 9.76%,according to public filings by the REIT.

Kevin Shields, president of GC Net Lease and CEO of GriffinCapital, says that the cap rate offers the REIT and its investors"a very competitive risk-adjusted return, especially for a propertylocated in the highly liquid and dynamic Los Angeles marketplace."Shields notes that the lease term extends 11 years, including afixed-rate extension option, and the triple-net lease structure"provides the REIT a stable cash flow with a measure of inflationprotection.”

In addition, Shields points out, "Given this property is ITT’sonly facility within the City of Los Angeles, serves a San FernandoValley population of nearly two million residents and provides avirtually irreplaceable parking ratio, it is vital to the tenant’songoing business operations in the Los Angeles metropolitanarea.”