Investment firm Griffin Realty Trust closed an insider deal to sublease a portion of its corporate parent’s headquarters campus in El Segundo t.
Griffin Capital, the sponsor of non-traded REIT , agreed to sublease 13,620 square feet at 1520 East Grand Avenue, also known as Griffin Capital Plaza, according to documents filed with the Securities and Exchange and Commission.
The two firms share a top executive, Kevin A. Shields. Griffin Capital, which Shields founded in 1995.
The monthly base rent for the sublease is $45,227–around $3.32 per square foot–with annual increases at three percent. The deal expires on June 30, 2024, with an optional five-year extension.
Griffin Capital has a portfolio of non-traded REITs and interval funds, including American Healthcare REIT, Griffin Institutional Access Credit Fund and Griffin Institutional Access Real Estate Fund. The firm recently agreed to a deal to sell its wealth and asset management operations in the U.S. to private equity firm Apollo Global Management. The units involved in the deal focused on investment products tied to private credit and real estate, according to a previous report in the Wall Street Journal. The acquisition will be paid for with Griffin stock. The terms of the deal were undisclosed.
Griffin Capital’s recent sublease deal in El Segundo comes at an office campus located on the southeast portion of Grand Avenue and Kansas Boulevard. The sublease space covers the entirety of Building A on the campus.
The transaction adds to the deal sheet for Los Angeles’ recovering office market. In the fourth quarter of 2021, the city posted a pandemic-era high of 3.6 million square feet of leasing activity.
Representatives for Griffin Realty Trust declined comment.
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