EL SEGUNDO, CA-Griffin Capital Corp. has announced that Bank of America has agreed to provide $35 million to a revolving credit facility for Griffin’s Net Lease REIT, bringing the initial value of the credit facility $70 million. Key Bank had earlier provided $35 million, which the fledgling REIT has used to acquire four properties.

Affiliates of both lenders—Key Bank Capital Markets and Bank of America Merrill Lynch—have been named the allied lead arrangers and joint book runners for the REIT, while Bank of America is the syndication agent. Net Lease REIT intends to increase the borrowing base to $150 million, by inviting other banks to contribute additional debt to the revolving credit line.

Griffin intends to use the money to fund the Net Lease REIT's ongoing purchases of single tenant office buildings, industrial properties and warehouses that have long-term, triple-net leases to   creditworthy tenants.

The pricing on the credit line is LIBOR plus 275 basis points, which is about 275 basis points lower than the Net Lease REIT's previous line of credit, according to Griffin chief executive Kevin Shields.  

The increased borrowing capacity is timely for Net Lease REITs, because the company has “several potential acquisition properties” that Griffin says it intends to close by the end of the first quarter 2012.

The REIT, distributed by Griffin Capital Securities, Inc. through leading independent broker-dealers, seeks to raise $750 million in equity. Griffin currently manages a portfolio of more than 8.5 million square feet located in 13 states, valued at about $1 billion.