Cigna Corporate Campus at Norterra Sold to Griffin Capital for $54.5m

VIZZDA—June 20^th, 2013 — John Post of USAA Real Estate Company has completed the sale of the 232,648 ft² Cigna Corporate Campus at Norterra to Griffin Capital for $54.5m or $234.26 per square foot. Griffin Capital—under the direction of Joseph Miller, its Chief Financial Officer—paid $6.2m in cash and encumbered the property under an existing $400m cross-collateralized deed of trust with Key Bank.

USAA Real Estate Company acquired a 127.83-acre parcel a portion of which comprises the land on which the project sits on January 5^th, 2000 for $6.05m, representing $47,328 per acre and $1.08 per square foot prices. A 16.48 parcel was conveyed to an affiliate of USAA for $1,415,264 on may 3^rd, 2000 and the complex was delivered to the market later that same year. The fully leased complex is comprised of two 3-story buildings of 116,324 ft² each and two 4-story parking structures totaling 223,584 ft².

The northern building of the complex, which is located north of the northeast corner of I-17 and Happy Valley Road, has been triple-net leased to Cigna Medical Group form October 1^st, 2010 and Cigna leased space in the southern building commencing October 1^st, 2011. The Cigna lease, comprising 100% of the rentable square feet of the complex was assigned to Griffin Capital at the time of sale, though their remaining term and any options to extend or terminate were not recorded.

By:

Paul Dionne

Director of Analytics

Vizzda.com