Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust, purchased a three-story, Class A office building in Carmel, Indiana for $28.6 million from Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges.
The 133,400-square-foot property is fully occupied by Midcontinent Independent System Operator Inc., an open access electricity transmission service provider, and is under an absolute-net lease for the next 11 years, expiring in April 2028.
“We’re delighted to add a large, Class A office facility under a long-term lease and on a fully occupied basis with a solid corporate tenant to our REIT’s portfolio,” said Shawn Carstens, Griffin Capital’s vice president of acquisitions. “The property not only houses the headquarters of MISO, but is also located in one of the top-performing office submarkets in Indianapolis.”
Constructed in 2008 as a build-to-suit for MISO, the property houses the company’s executive team and key operations, finance, engineering, and IT personnel and features a fully-built-out lower level containing an 80-seat cafeteria, a fitness center, locker rooms, an employee training room, and a 9-room conference facility.
The property is one of three buildings comprising MISO’s Carmel campus and is connected via skyway to the company’s primary control center where teams of engineers monitor the company’s system assets 24 hours a day, 7 days a week.
Griffin Capital Essential Asset REIT II invests in single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. As of May 17, 2017, the REIT has acquired 35 office and industrial buildings totaling approximately 7.3 million rentable square feet valued at approximately $1.1 billion. As of March 31st, the company had raised approximately $749.2 million in investor equity.