Griffin Capital Essential Asset® REIT Completes Acquisition of McKesson Corporation’s Scottsdale, Arizona Office Property for $37.7 Million
September 30, 2019 | Griffin Capital Essential Asset REIT, Inc.
Griffin Capital Essential Asset REIT, Inc. (the “REIT”) announced the acquisition of McKesson III (the “Property”) at a purchase price of $37.7 million from Ryan Companies US, Inc. (the “Seller”). The Property, located at 5801 North Pima Road in Scottsdale, Arizona, 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 “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.”
