Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, has purchased the McKesson Scottsdale Campus from Ryan Companies US Inc. for $67 million.
Completed at the end of 2017, the 217,000 square-foot property is comprised of two, two-story Class A office buildings centrally located between Scottsdale and Tempe, Arizona. The campus was originally developed by Ryan Companies as a build-to-suit for healthcare company McKesson Corporation, which leased the property for an initial term of approximately 10 years, expiring on February 28, 2028.
The McKesson Scottsdale Campus is the third property to be acquired with 1031 exchange proceeds from the disposition of DreamWorks Animation’s Headquarters and Studio Campus, which the REIT sold on November 21, 2017 for $290 million.
The REIT netted an 80 percent return from the DreamWorks property sale and acquired the LPL Financial Carolinas Corporate Campus in December 2017 for $130 million and the Quaker Sales and Distribution facility in Lakeland, Florida for $59.6 million.
“We are pleased to acquire this newly-built facility leased to a leading global healthcare company with over 150 years of operating history and $199 billion in revenue in 2017,” said Louis Sohn, Griffin Capital’s managing director of acquisitions. “The property provides a unique opportunity to acquire a long-term leased asset situated on one of the last remaining commercially developable parcels in the in-fill South Scottsdale Submarket.”
Griffin Capital Essential Asset REIT oversees a portfolio of 73 office and industrial properties purchased for a total of $3.2 billion, as of the fourth quarter 2018. The company’s initial public offering was declared effective by the U.S. Securities and Exchange Commission in November 2009. The REIT closed its follow-on offering in April 2014 after raising a total of approximately $1.5 billion in investor equity, according to Summit Investment Research.