Griffin Capital Essential Asset REIT II Buys Amazon Warehouse Near Columbus
Griffin Capital Essential Asset REIT II, a publicly registered non-traded real estate investment trust, purchased a class A distribution warehouse in the Columbus suburb of Pataskala, Ohio for $88.9 million, plus closing costs, according to a filing with the Securities and Exchange Commission.
The single-story 855,000-square-foot property is situated on a 96.01-acre site and is leased to Amazon.com, the world’s largest online retailer with annual revenues in excess of $100 billion.
The Amazon property is located within Prologis Park 70 approximately 21 miles east of downtown Columbus and 13 miles southeast of Port Columbus International Airport. The property was a build-to-suit as a sortable products fulfillment center designed to Amazon’s industry-leading specifications, and includes multi-level storage mezzanines and advanced software and robotics to stow and pick inventory.
The Amazon lease is a triple net lease with a remaining term of 14.8 years, expiring in August 2031. The forward 12-months’ rent is approximately $5.6 million with 1.5 percent annual rental rate increases for the remaining duration of the lease. The initial capitalization rate on Amazon.com’s year one income is 6.27 percent.
Griffin Capital Asset Property Management II will be responsible for managing the property and will be paid management fees totaling 3 percent of the gross monthly revenues collected from the property. Griffin Capital Asset Property Management II will hire an unaffiliated third party to manage the day-to-day operations and will pay the third party a portion of the management fees.
Griffin Capital Essential Asset REIT II focuses on acquiring single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type and lease duration. The REIT commenced its $2 billion initial public offering in July 2014 has raised $617 million in investor equity since inception, according to Summit Investment Research. The company’s portfolio is comprised of 30 office and industrial buildings.
