HAMPTON, VA—Griffin Capital Essential Asset REIT II has closed on the Huntington Ingalls Distribution Center located here, having paid $34.3 million, or $67 per square foot, and a cap rate of 6.51%.
The seller was High Street Realty and was represented by CBRE's Atlanta office.
The complex consists of two adjacent industrial buildings totaling 515,486 square feet. They are fully leased by Huntington Ingalls, which has signed a new 12.6-year lease to use the buildings as a primary warehouse and distribution facility.
The tenant is the largest shipbuilding company in the US as well as the sole provider of aircraft carriers to the US Navy. It also one of two firms that provide the US Navy with submarines. It was, in short, a solid bet for the REIT.
Besides the brand name tenant, the new acquisition "further diversifies our property type and geographic diversity by adding a class "A" industrial facility that continues to benefit from one of the fastest growing ports in the country," Michael Escalante, Griffin Capital's Chief Investment Officer, says in a prepared statement.
Separately, the REIT acquired the 203,506 square-foot Wyndham Worldwide corporate headquarters in Parsippany, NJ from an affiliate of Mack-Cali Realty Corp.
Like the Huntington Ingalls Distribution Center, the tenant is an investment grade company and the property has been fully leased since it was constructed as a build-to-suit in 2013. Griffin paid $81.4 million for the property.
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