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LOS ANGELES-Locally based Griffin Capital’s GC Net Lease non-traded REIT has closed on its first acquisition with the $26.32-million purchase of a 700,200-square-foot net-leased Chicago-area warehouse in Monee, IL. Griffin Capital president Kevin Shields tells GlobeSt that the company bought the property at an approximate 8.75% initial cap rate and that the deal includes a new 10-year lease with the tenant, World Kitchen, which had been in the property for 10 years and had five years remaining on a 15-year lease.

The new lease rolls down the rent closer to market rates, in exchange for which the tenant agreed to more frequent rent increases of 9% every three years rather than the previous 12% every five years, Shields notes, and it includes a provision allowing the tenant to expand by 191,000 square feet. He describes the World Kitchen warehouse as ” the kind of mission-critical, long-term, single-tenant net-leased office and industrial properties that we are focusing on” for the GC Net Lease REIT. World Kitchen is a developer, manufacturer and distributor of household products including CorningWare, Pyrex, RevereWare, Chicago Cutlery and EKCO.

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