WARREN, NJ-HFF has arranged a $110.6 million finance deal for an office and industrial portfolio in five states – including the Verizon Wireless headquarters here and the Avnet Inc. building in Chandler, AZ – that is held by Griffin Capital Corp.
The portfolio encompasses a total of 889,805 square feet in North Carolina, Ohio and Texas, as well as New Jersey and Arizona.
HFF executed the deal for Griffin Capital Corporation and five single-purpose borrowing entities that are owned by the Griffin Capital Essential Asset REIT. A 15-year, non-recourse, fixed-rate loan carrying a 4.96% interest rate was arranged through two life companies, according to the HFF team that was led by senior managing director Kevin MacKenzie and director John Chun.
Loan proceeds were used to pay down an existing credit facility and secure long-term fixed-rate financing at approximately 60% loan-to-value.
The portfolio is is substantially leased to investment-grade or investment-grade quality tenants with staggered lease expirations, according to HFF. The properties include the:
- 210,524-square-foot Verizon building
- 231,454-square-foot Avnet building
- 198,898-square-foot United Technologies Corp. building in Charlotte , NC
- 149,683-square-foot Schlumberger Technology Corp. building in Houston, and the
- 99,246-square-foot Northrop Grumman Systems Corp. building in Beavercreek, OH.
“The strong sponsorship, quality of the assets, and the credit of the tenants made this an attractive opportunity to the debt markets,” said MacKenzie.
Griffin Capital's CFO Joseph E. Miller, said the structure of the deal fit his Los Angeles-based company's business plan: “With this financing transaction, we reduced our short-term, secured debt obligations and lengthened our debt maturities to more closely align with our weighted average lease duration.”
HFF's managing directors Stephen Skok and Tucker Knight and director Michael Klein also worked on the transaction.
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