Home News A Griffin REIT Acquires Two AMEX Leased Buildings for $91.5 Million

A Griffin REIT Acquires Two AMEX Leased Buildings for $91.5 Million

Griffin Capital Essential Asset REIT II, Inc. (GCEAR II), a public, non-traded real estate investment trust (REIT), announced today the closing on a purchase in Phoenix, Arizona for $91.5 million, plus closing costs.

The acquisition includes two properties (collectively, the Property); a 300,000 square-foot three-story data center and a 213,361 square-foot office building both leased to American Express Travel Related Services Company, Inc. (the Tenant), a subsidiary of American Express Company.

“We are pleased to acquire this critical operating asset whereby the Tenant has continued to demonstrate a meaningful financial commitment over several decades,” commented Louis Sohn, Griffin Capital’s Director of Acquisitions.

Constructed as a build-to-suit in the 1980s, the Property is part of the American Express Beardsley Campus.

Both buildings are triple-net leased with remaining terms of about 8.2 years and a .2 percent average annual rent increase. Collectively, the Property’s current annual base rent is approximately $5.8 million.

The going-in capitalization rate for the Property is about 6.41 percent.

A $2 billion public offering, GCEAR II began raising capital during the second half of 2014. Through March 31, 2015, the REIT had raised just over $60 million in equity capital.

GCEAR II will fund the American Express acquisition with proceeds from its ongoing public offering and a draw from its revolving credit facility.