EL SEGUNDO, CA—Griffin Capital Corp. has acquired a 231,400-sq.-ft. class-A research and development facility in Chandler, Ariz. on behalf of Griffin Capital Essential Asset REIT Inc. The $32.5 million purchase price represents a going-in cap rate of 8.49 percent.

The property, which was built in 2008 as a build-to-suit, is fully leased to Avnet Inc., an Arizona-based publicly held business that distributes electronic components and customized technology solutions.

The property was purchased from a group of 21 tenant-in-common investors who bought the space soon after Avnet moved in after construction completed.

"Our reputation and experience investing alongside TIC investors, and doing so in partnership with independent financial advisors and their broker dealers, afforded us the opportunity to present the merits of a Section721 exchange directly to the investor group,” said Louis Sohn, Griffin Capital's senior vice president of acquisitions, in a statement. “At the end of the day, the TIC investors will diversify their investment across 19 assets and receive a competitive current distribution rate on their adjusted equity."

This purchase was the REIT’s first in the Phoenix market.

"This acquisition fulfills a number of key objectives for the REIT including: a highly accretive investment yield relative to the REIT's current distribution rate; our first acquisition in the Phoenix market; and the ability to acquire a large, institutional-quality asset while still preserving cash for future acquisitions,” said Michael Escalante, Griffin Capital's chief investment officer. “This transaction provides a classic 'win-win' scenario for all parties involved and demonstrates the competitive advantage inherent in our REIT's structure, whereby we can provide tax-efficient disposition options to owners of real property."

The seller was represented by Team Toci of Cushman & Wakefield of Arizona.