Public, non-traded REIT Griffin Capital Essential Asset REIT II, Inc. (GCEAR) recently closed on a Class A light manufacturing building in Concord, North Carolina for $5.5 million plus closing costs.
“This marks the REIT’s first acquisition, and we are pleased that the inaugural transaction embodies the key elements of our strategy: building a portfolio of Class “A” office and industrial business essential properties, leased to a creditworthy tenant on a long-term basis,” commented Michael Escalante, Griffin Capital’s Chief Investment Officer.
Owens Corning Sales, LLC, a subsidiary of Owens Corning, Inc. the company known for its basement refinishing systems advertised on TV by the Pink Panther, leases 100 percent of the 61,200 square-foot property. Owens has occupied the building since 2000 and has 9.8 years remaining on its triple-net lease with no termination options. Its annual base rent is about $352,000 plus annual rent increases of 2 percent each January.
Robert Corry, Griffin Capital’s Managing Director of Acquisitions said, “We are very excited about the mission critical components of this extremely well-maintained property, which we believe will continue to serve as an integral piece to the company’s core business of producing and selling glass fiber products. Owens Corning not only has strong brand recognition, but also has demonstrated durability, as it has been a Fortune 500 Company for more than 60 consecutive years.”
In addition to basement refinishing products, Owens manufactures building materials for residential and commercial use, glass-fiber reinforcements, and engineered materials for composite systems. The company has a BBB- rating from Standard and Poor’s.