Home Alts News GCEAR II Acquires the American Showa Assembly & Distribution Facility

GCEAR II Acquires the American Showa Assembly & Distribution Facility

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Griffin Capital Essential Asset REIT II (GCEAR II) purchased the American Showa Assembly & Distribution Facility in Columbus, Ohio for $17.2 million, representing a going-in capitalization rate of approximately 5.95 percent according to a company filing with the Securities and Exchange Commission.

The Class A facility was originally constructed as a build-to-suit in 2014 for American Showa, Inc., a subsidiary of the Japan-based Showa Corporation which manufactures automotive, motorcycle, and outboard suspension systems. The 304,000-square-foot, single-story property serves as the sole distribution hub for their clients in the United States, Canada and Mexico. American Showa recently consolidated its imported components distribution operations from three separate facilities within Ohio into the single Columbus location.

Don Pescara, Griffin Capital’s managing director of acquisitions, commented, “This asset provides increased geographic diversity to the portfolio, and the investment is consistent with our strategy of receiving stable cash flow from creditworthy tenants with long-dated leases.”

The seller was a partnership comprised of the Columbus Regional Airport Authority, Capitol Square, Ltd., and Duke Realty Corporation, and was represented by CBRE.

Griffin Capital Essential Asset REIT II is a publicly registered non-traded real estate investment trust with a portfolio that currently includes seven office properties totaling approximately 1.3 million rentable square feet acquired for an aggregate purchase price of approximately $241 million.