Griffin Capital Corporation announced, on behalf of Griffin Capital Essential Asset REIT, Inc. (GCEAR), the sale of Eagle Rock Executive Office Center in East Hanover, New Jersey.
The property was sold to Boxer F3, LLC, a value add multi-tenant office buyer, for $10.95 million and was originally acquired in November 2013 as part of a larger transaction where the allocated acquisition price was $6.5 million.
Three lease transactions were completed during the year of ownership raising occupancy from 35 to 41 percent and stabilizing near term rollover.
Commenting on the sale, Scott Tausk, Griffin Capital’s managing director of Asset Management stated, “This sale of Eagle Rock represents the execution of a strategy we put in place when it was acquired as part of an 18-property portfolio transaction.
“Because the property did not fit the REIT’s single tenant, essential asset investment criteria, our asset management team created a short-term value creation business plan, executed that plan and divested the asset
at a profit, all within thirteen months — we are very pleased with this transaction and will strive to replicate these results as similar opportunities arise.”
Mike Escalante, Griffin Capital’s chief investment officer added, “Although the majority of our investment strategies focus on the acquisition and ownership of single tenant assets, from time to time we do acquire multi-tenant assets as part of portfolio transactions. Eagle Rock is one such asset, and we are pleased we were able to add value during our brief ownership.”