Griffin Capital Essential Asset REIT II, Inc. (GCEAR II), a public, non-traded real estate investment trust (REIT), recently closed on a $10.1 million acquisition of an office building 100% leased to a judicial agency of the Commonwealth of Pennsylvania (the Commonwealth).
The Administrative Office of the Pennsylvania Courts (AOPC) leases all 56,556 square feet of rentable space in the single-story building located in Mechanicsburg, Pennsylvania. The current triple-net lease has a remaining term of about 9.3 years with average annual rental increases of 0.9 percent for the duration of the lease. The current annual base rent is about $745,000.
Credit rating agency Moody’s rates the Commonwealth of Pennsylvania Aa3, an investment grade credit rating.
“Given the investment grade credit quality of the Commonwealth and substantial remaining lease duration, we are very pleased to have acquired this asset at the favorable going-in capitalization rate of 7.36%,” said Robert Corry, Griffin Capital’s Managing Director of Acquisitions.