Griffin Capital Essential Asset REIT II Buys Alabama Office Campus
Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust, purchased a 670,000-square-foot office campus in Birmingham, Alabama from a subsidiary of Zurich Alternative Asset Management. According to a filing with the Securities and Exchange Commission, the purchase price was approximately $131.6 million, plus closing costs.
Located in southeast Jefferson County, the two-building, class A property was purchased from a subsidiary of Zurich Alternative Asset Management and is fully leased to Southern Company Services Inc. (S&P: A-), the nation’s second largest utility provider.
“We’re very pleased with the acquisition of such an extensive and high quality commercial property that is undergoing renovations and improvements. We’re confident that these improvements will transform this asset into a state-of-the art corporate campus within the Birmingham area, which is a metropolitan market that demonstrates solid economic growth fundamentals,” said Eric Kaplan, Griffin Capital’s managing director of acquisitions.
In March of this year, Southern Company Services executed a 28-year absolute triple net lease. As part of the lease, SCS was allotted capital for tenant improvements and shortly after lease execution it commenced a renovation plan.
Griffin Capital Essential Asset REIT II, which will be closing to new subscriptions on January 20, 2017, invests in single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type and lease duration. The REIT has acquired 33 office and industrial buildings totaling approximately 7.1 million rentable square feet and asset value of approximately $1.1 billion. As of November 30, 2016, the company has raised approximately $251.7 million from the sale of class A shares, approximately $414.2 million from the sale of class T shares, and approximately $6.7 million from the sale of class I shares.
