Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded daily NAV real estate investment trust, has purchased McKesson III located in Scottsdale, Arizona for $37.7 million from Ryan Companies US Inc., the property’s general contractor and developer.
Built earlier this year, the property is a two-story Class A office building totaling nearly 125,000 square feet situated on an 11-acre site. It is fully leased to McKesson Corporation on a long-term basis and serves as an expansion of its Scottsdale office campus.
Two adjacent buildings on the office campus, also leased by McKesson, were purchased by the REIT in April 2018 for $67 million. McKesson is a global healthcare firm and currently ranks 7th on the Fortune 500 list.
McKesson III is subject to an 83-year leasehold interest in land owned by members of the Salt River Pima-Maricopa Indian Community.
“For the past decade, we have been keenly focused on Phoenix due to its vibrant economy, which has shown significant growth over the past decade,” said Michael Escalante, Griffin Capital Essential Asset REIT’s chief executive officer. “We are pleased with the investment grade tenancy of McKesson, the business essential nature of the asset, and the strong market fundamentals we see in the Phoenix metropolitan area.”
In other company news, Griffin Capital Essential Asset REIT recently sold the Denver Tech Center, a 191,000-square-foot, Class A office building located in Denver, Colorado for $48.8 million.
Griffin Capital Essential Asset REIT owns 101 properties totaling 27.2 million in rentable square feet, representing a total REIT capitalization of $4.7 billion. as of June 30, 2019. Its portfolio of net-lease assets consists of single-tenant, business essential properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration