Home Alts News Griffin Capital Sells TIC Property, Nets Investors 10.6% IRR

Griffin Capital Sells TIC Property, Nets Investors 10.6% IRR

Griffin Capital Company LLC, a private investment firm and sponsor of non-traded investment programs, sold 1450 Veterans Boulevard – a tenant-in-common property –to Rees Properties for approximately $32 million. The Redwood, California property serves as headquarters for global design-build firm DPR Construction.

According to public records, the 53,000-square-foot Class A office building was purchased by Griffin on behalf of its TIC investors in March 2007 for $24.0 million. Griffin noted that the investment’s 10.63 percent internal rate of return exceeded the projections submitted to investors in the original underwriting.

“Many properties acquired in the 2006-2007 timeframe, before the global financial crisis, faced challenges, but we are pleased that a combination of our high-quality tenancy, building quality and desirable location in the robust San Francisco Peninsula market combined to generate a strong return for our investors,” said Michael Escalante, Griffin’s chief investment officer. “Given their scarcity, we were reluctant to sell such high-quality property, but recognizing when to divest is part of being a disciplined investor, so we seized the opportunity.”

Griffin Capital distributed more than $15.5 million to the 28 TIC investors on their investment of approximately $11.4 million, resulting in approximately $4.1 million in profits during the 10-year hold.

Griffin Capital and its affiliates own, manage, sponsor and/or co-sponsor a portfolio of approximately 42 million square feet of space, representing approximately $7.8 billion in asset value, based on purchase price, as of March 31, 2017.

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