Griffin Capital Essential Asset REIT, Inc. (GCEAR), a public, non-traded REIT, recently sold a property for nearly double its allocated acquisition price.
GCEAR sold College Park Plaza in Indianapolis, Indiana for $14.3 million after acquiring it as part of a portfolio acquisition in November 2013. The allocated cost of the property was $7.4 million.
“This sale of College Park Plaza continues the execution of a portfolio strategy we put in place when it was acquired as part of an 18-property acquisition. While the property did not fit the REIT’s single tenant, essential asset investment criteria, we felt we could create meaningful value for our investors by renewing and expanding the two largest tenants before divesting the property. Having accomplished those two lease transactions in 2014, we are able to complete this property’s strategic plan today,” commented Scott Tausk, Managing Director of Asset Management for Griffin Capital, the REIT’s sponsor.
Recently reported on The DI Wire, GCEAR successfully sold Eagle Rock Executive Office Center which was also acquired in November 2013 as part of the 18 asset transaction. Allocated costs for Eagle Rock were $6.5 million and it sold for $10.95 million.
“The successful completion of strategic plans for both College Park Plaza and the recently sold Eagle Rock Executive Office Center in New Jersey illustrates our capability to create value on non-core assets, allowing us a flexibility within our investment strategy that ultimately benefits our investors,” said Michael Escalante, Griffin Capital’s Chief Investment Officer.
GCEAR’s portfolio currently includes 56 office and industrial distribution properties with a total capitalization of over $2.3 billion.