EL SEGUNDO—Chicago-based Guggenheim Partners LLC has provided $105.6 million to locally based Griffin Capital Essential Asset REIT to refinance eight properties.
This 10-year first mortgage loan has an interest rate of 3.94%, and the loan represents a 57% loan-to-value ratio. The properties include single-tenant business essential properties totaling more than 1.5 million sq. ft., including three industrial assets and five office assets leased to companies such as Comcast Cable Holdings, GE Aviation and Westinghouse Electric.
The financing proceeds were used to pay down a portion of Griffin’s $175 million revolving credit facility, according to trust officials. Key Bank Real Estate Capital represented the borrower on this deal.
"This refinancing proves out the efficacy of our strategic capital markets plan, whereby we accumulate assets using our line, achieve critical mass and break off a multi-property portfolio we can finance on terms more competitive than we would have otherwise achieved were we to finance the properties on a stand-alone basis," says Kevin Shields, Griffin Capital's chairman and CEO, in a statement. "Following this term financing, over 75 percent of the REIT's portfolio is now financed with long-term, fixed-rate debt, which effectively match funds our asset and
liability duration and provides a highly predictable, stable cash flow for our REIT."