Griffin Capital Essential Asset REIT Acquires McKesson Corporation’s Scottsdale Office Property
October 3, 2019 | Griffin Capital Essential Asset REIT, Inc.
Griffin Capital Essential Asset REIT, Inc. (the “REIT”) announced the acquisition of McKesson III in Scottsdale, Arizona, at a purchase price of $37.7 million from Ryan Companies US, Inc. The property is a two-story Class “A” office building totaling 124,879 square feet situated on an 11.02-acre site. The property is fully leased to McKesson Corporation (“McKesson”) pursuant to a long-term lease and serves as an expansion of McKesson’s Scottsdale office campus.
The property is subject to an 83-year leasehold interest in land owned by members of the Salt River Pima-Maricopa Indian Community. It was completed by Ryan Companies US, Inc., as general contractor and developer, in June 2019 and serves as an extension of a key McKesson regional operating facility. Two adjacent buildings on the campus, also leased by McKesson, were acquired by the REIT in April 2018 for $67.0 million. McKesson is a global leader in the healthcare industry and currently ranks 7th on the Fortune 500 List
Commenting on the acquisition, Louis Sohn, Griffin Capital Essential Asset REIT, Inc.’s Managing Director of Acquisitions and Corporate Finance, stated, “We are pleased to have acquired this brand-new facility which serves as an expansion of McKesson Corporation’s campus. The property and campus are critical to McKesson’s ongoing operations. We believe that the investment will generate stable cash flow and provide long-term value for our shareholders.”
Michael Escalante, Griffin Capital Essential Asset REIT, Inc.’s Chief Executive Officer, added “This acquisition is an excellent addition to our REIT’s institutional-quality portfolio. For the past decade, we have been keenly focused on Phoenix due to its vibrant economy, which has shown significant growth over the past decade. We are pleased with the investment grade tenancy of McKesson, the business essential nature of the asset, and the strong market fundamentals we see in the Phoenix metropolitan area.”
Source: Griffin Capital Essential Asset REIT Press Release
