EL SEGUNDO, CA – (work wire) – Griffin Capital Company, LLC (“Griffin Capital”), a leading privately owned alternative asset manager, has announced the sale of 62,237 square feet of office property located in Emeryville, California for $36 million to Long Fellow Real Estate Partners. , the largest private life sciences services company in the United States. The property was sold on behalf of Griffin Capital (Shellmound) investors, DST and resulted in a total net realized return of approximately 427%, representing a 12.26% net internal rate of return over the 15-year ownership period.
The Shellmound property was acquired by Griffin Capital in 2006 for $15.75 million on behalf of a group of co-investors (“TIC”); The TIC structure was transferred to the Delaware Statutory Trust in 2016 as the lease was extended and the property recapitalised. The property was 100% leased to Expression College of Digital Arts, and as part of the sale, Griffin Capital helped negotiate an early termination of the lease.
“When we acquired the Shellmound property, we were attracted by strong cash flow, stable rent and a desirable location in the fast-growing East San Francisco Bay. After we weathered the Great Recession and the tenant renewed a new long-term lease, we were able to increase our net cash return on cash to 10% annually,” said Kevin A. Shields, Chairman and CEO, Griffin Capital.
Mr. Shields continued, “Emeryville has developed into a leading center for life sciences users, which has generated significant interest from potential acquirers looking to shift Shellmound from office science to life sciences. We have managed to translate this increase in demand into a very attractive exit for our investors, who have entrusted their capital to us for more than a decade. This successful outcome reflects our long-term focus on high-quality growth markets and our commitment to strive to achieve the best possible results for our investors.”
Griffin Capital was represented in the transaction by JLL Capital Markets, a global, full-service provider of capital solutions for real estate investors and occupiers.
About Griffin Capital, LLC
Griffin Capital is a leading alternative investment asset management company, headquartered in El Segundo, California. Founded in 1995, Griffin Capital has owned, managed, sponsored or co-sponsored investment programs comprising nearly $20 billion in assets. The company’s senior executives and employees have invested more than $300 million in various investment sectors, aligning the interests of Griffin Capital with those of its investors. The company leverages the breadth and depth of its cycle-tested investment management teams to take advantage of long-term economic trends and secular growth opportunities in the real estate sector through direct investment strategies.
Additional information is available at: www.griffincapital.com.