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Griffin Capital Divests Simi Valley Asset for Nearly $25M
El Segundo-based Griffin Capital Essential Asset REIT, Inc. sold a 273,241-square-foot office property located at 1800 Tapo Canyon in Simi Valley to an unnamed buyer for $24.5 million. The asset is 100% leased to Bank of America through December 2020, though it plans to vacate the property upon lease expiration.
Griffin Capital’s Michael Escalante says, “Despite the tenant’s plan to not renew its lease upon expiration, our sale price, combined with the attractive cash flows received over the lease term, allowed us to meet our original return expectations, thus serving as verification of our original investment thesis.”
Griffin looked at redeveloping the property as a hedge should the tenant vacate and instead received unsolicited purchase offers from credible buyers. “Based on rigorous financial analysis, we determined that a sale would provide an attractive risk-adjusted return that was superior to the potential risks that might arise with the redevelopment alternative,” says Escalante.
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- ◦Sale/Acquisition
