Attached files
file | filename |
---|---|
EX-99 - PRESS RELEASE - Griffin Capital Essential Asset REIT, Inc. | rrd349992_38021.htm |
Maryland
|
26-3335705
|
|
(State or other jurisdiction of
|
(IRS Employer
|
|
incorporation)
|
Identification No.)
|
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
In addition, the Registrant, through a wholly owned subsidiary, obtained a bridge loan in the amount of $6.2 million from KeyBank (the "Bridge Loan"). The term of the Bridge Loan is four months, and it will bear interest at a rate of 6.75%. The Bridge Loan is guaranteed by the Registrant, as well as by a personal guaranty of Kevin A. Shields, the Registrant's President and Chairman.
The Registrant's advisor earned $402,500 in acquisition fees, and is entitled to reimbursement of $80,500 in acquisition expenses in connection with the acquisition of the Travelers property.
Travelers is the largest of the six subsidiaries that comprise The Travelers Companies, Inc., a publicly-traded company (NYSE: TRV). Travelers has been in business since 1903 and carries a stand-alone investment grade debt credit rating of 'AA' by Standard & Poor's.
The Travelers property serves as a regional headquarters location for Travelers and houses the full complement of services offered by Travelers including underwriting and claims processing for Travelers' many different actuarial disciplines. Travelers has been in continuous occupancy at the Travelers property since 2005, during which time over $5 million of renovations have been invested into the Travelers property including the addition of a two-level parking structure and the renovation of the atrium area at the core of the building.
The Travelers property is located within the Denver Technology Center ("DTC") district in Greenwood Village, Colorado. The DTC features numerous amenities including retail, dining and residential properties and is the Denver Metropolitan Statistical Area's largest office submarket outside of the Central Business District. The Travelers property is accessible to the entire region via Interstate Highway 25, which is the area's primary north-south thoroughfare and connects with many of the area's other major thoroughfares including Interstate Highway 225 and Colorado State Highway 470. In addition, the Travelers property is located less than a half mile south of the Arapahoe Light Rail Station.
Under the Travelers lease, as amended, Travelers is responsible for providing all building services and paying all building and property expenses, including repairs and maintenance, subject to an expense cap on controllable expenses. The landlord is responsible for potential capital expenses related to the structural integrity of the building, foundation, roof, parking area and building systems including the major HVAC components, elevators and electrical and mechanical lines. The new term of the Travelers lease is 12 years, which commenced on June 29, 2012, and the rent schedule is as follows:
Month commencing Annual stated base rent $/square foot
The implied initial capitalization rate for the Travelers property is approximately 7.61%. The estimated going-in capitalization rate is determined by dividing the projected net rental payment for the first fiscal year the Registrant owns the property by the acquisition price (exclusive of closing and offering costs). Generally, pursuant to each lease, if the tenant is responsible for the payment of all property operating expenses, insurance and taxes, the net rental payment by the tenant to the landlord is equivalent to the base rental payment. The projected net rental payment includes assumptions that may not be indicative of the actual future performance of a property, including the assumption that the tenant will perform its obligations under its lease agreement during the next 12 months.
The Travelers lease contains an option to extend the Travelers lease duration for two five-year periods. Travelers has the option to terminate the Travelers lease, effective June 29, 2019, upon at least 12, but no more than 15, months' written notice to the landlord and the payment of a termination fee equal to $2.0 million.
The GC Net Lease REIT Property Management, LLC, an affiliate of the Registrant, will be responsible for managing the Travelers property and will be paid management fees in an amount of 3% of the gross monthly revenues collected from the Travelers property. The GC Net Lease REIT Property Management, LLC has hired an unaffiliated third party to manage the day-to-day operations and will pay such third party a portion of the management fees paid by the Registrant.
99.1 Press Release for Travelers property dated July 2, 2012
Griffin Capital Net Lease REIT, Inc.
|
||||||||
Date: July 02, 2012
|
By:
|
/s/ Joseph E. Miller
|
||||||
Joseph E. Miller
|
||||||||
Chief Financial Officer
|
||||||||
Exhibit No.
|
Description
|
|
EX-99.1
|
Press Release
|