Griffin Capital Essential Asset REIT II Acquires Class “A” Commercial Property in Birmingham, Alabama Under Long Term Lea...
January 05 2017 - 12:18PM
Griffin Capital Corporation (“Griffin Capital”) announced today, on
behalf of Griffin Capital Essential Asset REIT II, Inc. (the
“REIT”), the acquisition of a Class “A”, two-building, 669,438
square-foot office campus (the “Property”) fully leased to Southern
Company Services, Inc. (S&P: A-) (“SCS”). The REIT
purchased the Property from a subsidiary of Zurich Alternative
Asset Management.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/be1710b4-f10b-46f8-93a5-324d5f059edc
“We're very pleased with the acquisition of such
an extensive and high quality commercial property that is
undergoing renovations and improvements. We're confident that
these improvements will transform this asset into a state-of-the
art corporate campus within the Birmingham area, which is a
metropolitan market that demonstrates solid economic growth
fundamentals. The fact that this property is situated in an
economically vibrant neighborhood in the Birmingham area, and is
under a multi-decade lease through a corporate tenant with superior
credit quality, further positions the REIT to drive shareholder
value," said Eric Kaplan, Griffin Capital’s Managing Director of
Acquisitions.
In March of this year, SCS executed a 28-year
absolute triple net lease. As part of the lease, SCS was allotted
capital for tenant improvements and shortly after lease execution
it commenced a robust renovation plan. Established in 1963,
SCS is the only services company for its parent entity, Southern
Company (NYSE:SO) (S&P: A-), the second largest utility
provider in the U.S. SCS provides a wide range of services
including operations, executive and advisory services, construction
and plant management, general engineering, information technology,
finance, accounting and treasury, marketing, and human resources to
its affiliates and its parent company.
The Property is located in southeast Jefferson
County, approximately one-half mile southeast of the intersection
of US Highway 280 and Interstate 459, which is the busiest
intersection in Alabama. The Property’s surrounding
neighborhood enjoys convenient access to the Birmingham area by way
of a number of major transportation arteries.
Michael Escalante, Griffin Capital's Chief
Investment Officer and President of the REIT, added, “From analysis
of the location and local area economic fundamentals, to ensuring
that properties we purchase are under a long duration lease with an
investment grade tenancy, we combine our expertise as both real
estate investors and commercial property operators to support our
mission of creating significant long-term shareholder value for the
REIT in terms of both steady income distributions as well as a
potential future capital appreciation event."
Guy Ponticiello and Bruce Westwood-Booth of CBRE
represented the seller of the Property.
About Griffin Capital Essential Asset
REIT II Griffin Capital Essential Asset REIT II, Inc. is a
publicly registered non-traded REIT focused on acquiring 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
December 31, 2016, Griffin Capital Essential Asset REIT II, Inc.
has acquired 33 office and industrial buildings totaling
approximately 7.1 million rentable square feet and asset value of
approximately $1.1 billion.
About Griffin Capital
CorporationLed by senior executives with more than two
decades of real estate experience collectively encompassing over
$22 billion of transaction value and more than 650 transactions,
Griffin Capital and its affiliates have acquired or constructed
approximately 58.4 million square feet of space since 1995. Griffin
Capital and its affiliates own, manage, sponsor and/or co-sponsor a
portfolio consisting of approximately 42 million square feet of
space, located in 30 states and the United Kingdom, representing
approximately $7.3 billion* in asset value, based on purchase
price, as of December 31, 2016. Additional information about
Griffin Capital is available at www.griffincapital.com.
*Includes the property information related to interests held in
certain joint ventures.
This press release may contain certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking
statements can generally be identified by our use of
forward-looking terminology such as “may,” “will,” “expect,”
“intend,” “anticipate,” “estimate,” “believe,” “continue,” or other
similar words. Because such statements include risks, uncertainties
and contingencies, actual results may differ materially from the
expectations, intentions, beliefs, plans or predictions of the
future expressed or implied by such forward-looking statements.
These risks, uncertainties and contingencies include, but are not
limited to: uncertainties relating to changes in general economic
and real estate conditions; uncertainties relating to the
implementation of our real estate investment strategy;
uncertainties relating to financing availability and capital
proceeds; uncertainties relating to the closing of property
acquisitions; uncertainties relating to the public offering of our
common stock; uncertainties related to the timing and availability
of distributions; and other risk factors as outlined in the REIT’s
prospectus, as amended from time to time. This is neither an offer
nor a solicitation to purchase securities.
Jennifer Nahas
Vice President, Marketing
Griffin Capital Corporation
jnahas@griffincapital.com
Office Phone: 949-270-9332
Cell Phone: 949-433-6860
Joseph Kuo / Matthew Griffes
Haven Tower Group
jkuo@haventower.com / mgriffes@haventower.com
424 652 6520 ext 101 or ext 103
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