Griffin Capital Essential Asset REIT (Griffin Essential) announced yesterday the acquisition of Farmers Insurance Exchange National Claims Facility for $19.1 million plus closing costs. The 102,035 square foot office building is located in Olathe, Kansas. It sits on an 8.9 acre parcel of land in Corporate Ridge Office Park, which is near major Kansas highways I-435 and I-35.
The building is leased to Farmers Insurance Exchange (Farmers) as a triple net lease with a remaining term of over ten years, expiring in March 2024. The current approximate annual base rent is $1,454,000. Under the Farmers lease, Farmers Insurance Exchange has the right to renew the lease for two five-year extension terms at 95% of the then-prevailing market rental rate. Farmers Insurance Exchange is one of the country’s largest insurers of small businesses, homes, and vehicles. Operations at the facility include the National Property Claims Unit, the Catastrophe Response Team, Logistics Corps, Kansas and Missouri Property Claims, and the satellite operations of the University of Farmers that oversees initial training of staff.
Shawn Carstens, Griffin Capital’s Vice President of Acquisitions, commented, “This acquisition represented an excellent opportunity to invest in an institutional-quality asset leased on a long-term basis to an investment grade rated tenant. Farmers has a solid financial profile and is an outstanding addition to our tenant roster.” Don Pescara, Griffin’s Managing Director of Acquisitions, added, “This asset provides increased geographic diversity to the portfolio, and the investment is consistent with our strategy of generating stable cash flow and long term value for our shareholders.”
Griffin Capital Essential Asset REIT is a publicly registered non-traded REIT that currently has 42 office and industrial distribution properties that total approximately 8.92 million in rentable square feet and is worth approximately $1.3 billion. The REIT is focused on creating a diversified portfolio of business essential office and industrial properties that are net leased on a long term basis to creditworthy corporate tenants.