Griffin Capital Essential Asset REIT II Acquires Tuscon Aetna Property

Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust sponsored by Griffin Capital Corp., acquired the Aetna property in Tucson for $21.7 million plus closing costs. The 100,273-square-foot facility was purchased from a subsidiary of Aetna Inc. (NYSE: AET) through a sale-leaseback transaction.

The property is 100 percent leased to Aetna Life Insurance Company, which has an investment-grade credit rating of ‘AA-’ from S&P and is an affiliate of one of the nation’s leading diversified health care benefits companies. As part of the sale-leaseback transaction, the tenant executed a new 10-year lease with annual base rental rate increases of 3.0 percent and no termination or contraction options. The tenant and its affiliates have been an occupant at the property since it was constructed as a build-to-suit in 2001. The going-in capitalization rate for the property is approximately 6.93 percent.

Michael Escalante, Griffin Capital’s chief investment officer, said, “Given the investment-grade credit quality of the tenant, and long-term lease with annual rental rate increases, this acquisition is an excellent addition to our REIT’s institutional-quality portfolio.”

The seller was represented by Cushman & Wakefield’s Boston office with local support from Cushman & Wakefield’s Tucson affiliate, Picor Commercial Real Estate Services.

Last week, The DI Wire reported that Griffin Essential Asset REIT II acquired the FedEx Freight Dual-Hub Facility in Ohio. To read about the transaction, click here.

Griffin Capital Essential Asset REIT II, Inc. is a publicly registered non-traded real estate investment trust with a portfolio that currently includes 16 office and industrial buildings totaling approximately 2.6 million rentable square feet and asset value of approximately $404 million.