Griffin Capital Net Lease REIT, Inc. has acquired the 70,100-square-foot office building at 500 Naches Ave. SW in Renton, WA from ECI Two Rivertech LLC for $12 million, or about $171 per square foot.
The building is fully leased to The Boeing Company (NYSE: BA
) and serves as the headquarters for its aircraft financing unit, Boeing Capital Corp. The site is located near several other Boeing facilities, including the Longacres Campus, Boeing Airfield and its 737 Assembly Plant.
During its tenancy, Boeing has completed numerous capital improvements on the property, including a new roof system and upgrades to the parking area. The three-story office building was constructed in 1990 on five acres in the Renton/Tukwilia submarket of King County.
"We are pleased to acquire another Seattle area asset at an attractive 7.80% going-in capitalization rate and price per square foot that is well-below replacement cost," said Louis Sohn, Griffin Capital's senior vice president of acquisitions. "Given the tenant's 15-year history at the location, coupled with the proximity to many key Boeing facilities, we believe Boeing Capital Corporation will continue to find the property attractive as its global headquarters for the foreseeable future."
Stephen Sutherland, Craig Wilson and Ed Hogan with CBRE represented the seller. Los Angeles-based Griffin Capital handled the acquisition in-house.
Following the acquisition the REIT announced it has changed its name from Griffin Capital Net Lease REIT to Griffin Capital Essential Asset REIT. The company reports the new name more accurately reflects the REIT's strategy of acquiring properties essential to the tenant's ongoing business operations and distinguishes it from being categorized as simply a 'net lease' REIT.
Please see CoStar COMPS #2680722 for additional information on this transaction.