Griffin Capital Enters Greater Boston Market With Andover Buy

ANDOVER, MA—Griffin Capital Corp. of El Segundo, CA reports it has acquired a fully-leased office, research and development building here for $11.5 million, plus closing costs.

Griffin acquired the 64,200-square-foot building on behalf of Griffin Capital Essential Asset REIT II, Inc. from Burlington, MA-based R.J. Kelly Co. The seller was represented by Cushman & Wakefield's Boston office. The Cushman & Wakefield team, led by president Robert Griffin, vice chairman Edward Maher and executive director Matt Pullen, oversaw the transaction of the recently renovated property.

The building is 100% leased to electronic security solutions firm Morpho Detection LLC through May 31, 2027. Morpho SA, the parent company of the tenant, is the guarantor of the lease at the property. Morpho SA is one of nine operating divisions of French multinational firm Safran. An exact address of the building was not provided to Globest.com.

Robert Corry, Griffin Capital's managing director of acquisitions, says of the firm's newest asset, "We believe the property is an essential facility for the tenant, as it is the sole location for the assembly, testing and shipment of their trace products, which are products that are used to detect small amounts of chemicals (explosives/drugs) in airports across the world. We believe that the steady net rental revenue stream with 2.75% average annual rental rate increases pursuant to the lease will continue to inure to the benefit of the REIT for many years to come."

Griffin Capital Essential Asset REIT II, Inc. is a publicly registered non-traded REIT with a portfolio that currently includes 14 buildings totaling approximately 2.4 million rentable square feet with an asset value of more than $356 million.

Michael Escalante, president of the REIT, adds, "This marks the REIT's first acquisition in the greater Boston market. Due to the close proximity to major highways and primary thoroughfares, the property offers the tenant access to a robust labor pool in both Massachusetts and New Hampshire. With this acquisition, we are further diversifying the REIT within this first-tier MSA both from a geographic and industry concentration perspective."

In recent weeks, Griffin Capital acquired 14 Sylvan Way, a 203,506-square-foot Class A office building in Parsippany, NJ for $81.4 million.  The firm also purchased the Huntington Ingalls Distribution Center in Hampton, VA for $34.3 million. 

Griffin Capital and its affiliates manage, sponsor and/or co-sponsor a portfolio consisting of approximately 26 million square feet of space, located in 29 states, representing approximately $4.3 billion in asset value. Last month, Griffin Capital finalized its $3-billion merger with Signature Office REIT.