$110.64 million financing for 5-property multi-state office and industrial portfolio arranged by HFF

Kevin MacKenzie

IRVINE, CA – HFF announced today that it has arranged $110.64 million in financing for a five-property office and industrial portfolio totaling 889,805 square feet in New Jersey, North Carolina, Ohio, Texas, and Arizona.

                HFF worked exclusively on behalf of Griffin Capital Corporation and five single-purpose borrowing entities, wholly owned by the operating partnership of Griffin Capital Essential Asset REIT, Inc., to arrange the 15-year, 4.96 percent, non-recourse, fixed-rate loan through two life companies. 

Loan proceeds were used to pay down an existing credit facility and secure long-term fixed-rate financing at approximately 60 percent loan-to-value.

The portfolio is cross-collateralized, cross-defaulted, and substantially leased to investment-grade or investment-grade quality tenants with staggered lease expirations.  Individual property details are listed below:

John Chun

Name                   Tenant                Location                         Size     

                          

Verizon Building    Cellco Partnership (dba  Warren, NJ  210,524 SF   Verizon Wireless)                     

UTC Building  United Technologies Corp. Charlotte, NC  198,898 SF  

Northrop Building  Northrop Grumman Systems Corp.  Beavercreek, OH  99,246 SF    

Schlumberger Building  Schlumberger Technology Corp. Houston, TX  149,683 SF  

Stephen Skok

Avnet Building Avnet, Inc.  Chandler, AZ   231,454 SF  

                The HFF team representing the borrower was led by senior managing director Kevin MacKenzie and director John Chun, along with regional support from managing directors Stephen Skok and Tucker Knight and director Michael Klein.

                “The strong sponsorship, quality of the assets, and the credit of the tenants made this an attractive opportunity to the debt markets. 

Tucker Knight

“By utilizing these merits through an extensive marketing process, we were able to identify the best solution for the portfolio including the necessary flexibility to achieve Griffin’s business plan,” said MacKenzie.

“We are pleased to have completed this long-term, fixed-rate secured debt transaction with the lender,” said Joseph E. Miller, chief financial officer of Griffin Capital Corporation, the sponsor of Griffin Capital Essential Asset REIT, Inc.

Michael KLein

 “With this financing transaction, we reduced our short-term, secured debt obligations and lengthened our debt maturities to more closely align with our weighted average lease duration.”

Griffin Capital Corporation ("Griffin Capital") is a privately‐owned real estate investment company headquartered in Los Angeles.

Joseph E. Miller

Led by senior executives, each with more than two decades of real estate experience collectively encompassing more than $16 billion of transaction value and more than 650 transactions, Griffin Capital and its affiliates have acquired or constructed more than 28  million square feet of space since 1995. 

Griffin Capital and its affiliates currently own, manage, sponsor and/or co-sponsor a portfolio consisting of more than 26 million square feet of space, located in 32 states and representing approximately $4.7 billion in asset value. 

Additional information about Griffin Capital is available at www.griffincapital.com.

For a complete copy of the company’s news release, please contact:

Kristen M. Murphy

Associate Director

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

tel (main) 617-338-0990 | (direct) 617-338-1572 | cel 617.543.4873 | www.hfflp.com

krmurphy@hfflp.com