Griffin Capital Essential Asset REIT, Inc., a publicly registered non-traded real estate investment trust, has sold a 151,300-square-foot, Class A office building located at 2160 Grand Avenue, El Segundo, California for $63.5 million, or $420 per square foot.
Purchased by the REIT in February 2014 for $52.7 million, the three-story property was originally 100 percent leased to a single tenant with a lease expiration of June 30, 2021. As part of the transaction, the REIT delivered the property unencumbered by this lease.
The REIT noted that it bought out and terminated the sole tenant’s lease on an accretive basis since value-add buyers prefer vacant buildings.
“Since the REIT’s acquisition, the El Segundo office submarket has benefitted from outsized tenant demand in the city’s Lower Westside markets, drawing to El Segundo a larger and more diverse tenant base than had historically been interested in the location, resulting in material growth in both office rental rates and institutional capital investment,” said Michael Escalante, chief executive officer.
The building was purchased by SteelWave.
Griffin Capital Essential Asset REIT is a self-managed non-traded REIT with a portfolio consisting primarily of single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. As of the third quarter, the REIT owned 101 office and industrial properties valued at approximately $4.7 billion.