Griffin Capital Co. has sold a 62,237-square-foot office property in Emeryville, Calif., for $36 million to Long Fellow Real Estate Partners.
The property was sold on behalf of Griffin Capital (Shellmound) Investors, DST and resulted in a realized total net return of about 427 percent, representing a 12.26 percent net internal rate of return over a 15-year holding period.
Griffin Capital acquired the Shellmound property in 2006 for $15.75 million on behalf of a consortium of tenant-in-common (TIC) investors. The TIC structure was converted to a Delaware Statutory Trust in 2016, when the lease was extended and the property recapitalized. The property was 100 percent net leased to Expression College for Digital Arts and, as part of the sale, Griffin Capital assisted in the negotiation of an early termination of the lease.
“When we acquired the Shellmound property, we were attracted to its strong cash flow, stable tenancy and desirable location in the rapidly gro
