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Non-Traded REIT Acquires Fifth Property This Year

Griffin Capital Essential Asset REIT (GCEAR), through its sponsor Griffin Capital Corporation, announced today that it has acquired a 249,409 square foot property in Parsippany, New Jersey. The Wyndham Worldwide Corporate Headquarters was purchased from an affiliate of Mack-Cali Realty Corporation for $96.6 million.

Wyndham Worldwide is one of the largest hospitality companies in the world. It has a remaining lease term of over 15 years with annual base rental rate increases of 1.75% and has been an occupant at the building since its construction as a build-to-suit in 2009. The property won The Outstanding Building of the Year Award (TOBY) for the Middle Atlantic Region from the Building Owners and Managers Association for 2014.

This is GCEAR’s fifth acquisition in 2014 and its first acquisition on the East coast this year. The non-traded REIT focuses on “business essential” office and industrial properties. Its year-to-date acquisitions have a combined total purchase price of over $320 million, with a weighted average capitalization rate of 7.7% and weighted average remaining lease term at acquisition of over 11.5 years.

Louis Sohn, Griffin Capital’s Senior Vice President of Acquisitions commented, “We are pleased to further expand our footprint in the New Jersey market and acquire this award-winning property located in the premiere Mack-Cali Business Campus. This acquisition adds another S&P 500 company to our blue-chip tenant roster and elevates the REIT’s total capitalization to approximately the $2 billion mark.”

GCEAR’s portfolio consists of 47 office and industrial distribution properties that total approximately 11.2 million rentable square feet and have a total capitalization of approximately $2 billion.

GCEAR is closed to new investors.