Griffin Capital Corporation (“Griffin Capital”) on behalf of Griffin Capital Essential Asset REIT II, Inc. (the “REIT”), purchased the 100,273-square-foot, Aetna Life Insurance Company (“Tenant”) leased facility at 3535 E Valencia Road in Tucson, Arizona (“Property”) from a subsidiary of Aetna, Inc. (“Aetna” or “Parent”) (NYSE:AET) First Health Group Corp. through a sale-leaseback transaction. The property commanded a sale price of $21.6 million ($215 PSF).

The Property is 100% leased to Coventry Health Group Corporation (“Coventry”), a subsidiary of Aetna Life Insurance Company, which has an investment-grade credit rating of ‘AA-‘ from S&P as an affiliate of Aetna, one of the nation’s leading diversified health care benefits companies. As part of the sale-leaseback transaction, the Tenant executed a new 10-year lease at the Property with annual base rental rate increases of 3.0% and no termination or contraction options. Coventry has been an occupant at the Property since it was constructed as a build-to-suit in 2001.

Commenting on the acquisition, Louis Sohn, Griffin Capital’s Director of Acquisitions, said, “Given the Tenant’s historic occupancy of and its capital investment into the Property and the 10-year lease term executed at closing, we believe Aetna will continue to find the Property and market attractive well into the future.”

Michael Escalante, Griffin Capital’s Chief Investment Officer, added, “Given the investment-grade credit quality of the tenant, and long-term lease with annual rental rate increases, this acquisition is an excellent addition to our REIT’s institutional-quality portfolio.”

Griffin Capital Essential Asset REIT II, Inc. is a publicly registered non-traded REIT with a portfolio that currently includes 16 office and industrial buildings totaling approximately 2.6 million rentable square feet and asset value of approximately $404 million. Led by senior executives with more than two decades of real estate experience collectively encompassing over $21 billion of transaction value and more than 650 transactions, Griffin Capital and its affiliates have acquired or constructed approximately 41 million square feet of space since 1995. Griffin Capital and its affiliates own, manage, sponsor and/or co-sponsor a portfolio consisting of approximately 26.7 million-square-feet of space, located in 29 states, representing approximately $4.6 billion in asset value.

The transaction was spearheaded by Cushman & Wakefield’s Boston-based capital markets team consisting of President Robert Griffin, Vice Chairman Edward Maher, Executive Director Matt Pullen and Associate Director Jim Tribble, in conjunction with Tucson office market specialist, Rick Kleiner, a principal at C&W’s local affiliate Picor Commercial Real Estate Services.

For additional information refer to RED Comp #3146.

New Extended Stay Brand, Officially Launched in May 2015, Grows to 25 Hotels in U.S.

Newton, MA-based Sonesta International Hotels Corporation, parent company for its Sonesta ES Suites brand purchased recently nine new extended stay hotels. Sonesta ES Suitest extended stay brand for Sonesta, officially launched in May 2015. The original announcement included details of the over $250 million investment made in upgrades and redesigns to the U.S. extended stay and full service collection.

With the addition of these new locations, Sonesta ES Suites expands its footprint from 16 to 25 hotels nationwide. Travelers will now find Sonesta ES Suites in: Tucson, AZ; Colorado Springs, CO; Minneapolis-St. Paul, MN; Omaha, NE; Princeton/Monmouth Junction, NJ; Somers Point, NJ; Cincinnati, OH; Oklahoma City, OK and Burlington, VT.

The Tucson property was formerly a Residence Inn at 6477 E Speedway Blvd. in Tucson and commanded a $5.5 million sale price ($43,000 per room) for the 128-suite hotel on 3.8 acres east of Wilmot and El Dorado Place on Speedway. Banners went up on the building July 23rd to officially rebrand the property. Remodeling is scheduled for later next Spring.

This is the second Arizona hotel property for Sonesta ES Suites, the first being in Flagstaff. Earlier this month, Sonesta also celebrated the grand opening of the full-service Sonesta Bee Cave Austin, a new build hotel in greater Austin, TX.

Sonesta ES Suites is a surprisingly different take on extended stay hotels. Designed to be flexible to cater to the diverse needs of guests, each of the residence-style hotels feature oversized accommodations, adaptable work areas and common spaces, and a friendly, attentive staff that aim to make guests feel relaxed and comfortable.

From studios to roomy one- and two-bedroom units, Sonesta ES Suites provide an ideal amount of space and versatility for business travelers, families on vacation, or guests relocating for extended periods of time. Each suite is fitted with a fully equipped kitchen, helping guests to manage budgets while separate bedrooms and living spaces offer privacy and space to relax and recharge. From free daily breakfast, unexpected treats and social gatherings to celebrating the unique culture and flavor of the local community, guests of Sonesta ES Suites enjoy a distinctive experience along with the warm and welcoming feeling of employees who care.

“This is a big day for Sonesta,” said Carlos Flores, President & Chief Executive Officer of Sonesta International Hotels Corporation. “We’re very excited about the growth of our new extended stay brand Sonesta ES Suites as well as our U.S. collection as a whole, which has increased to 35 hotels nationwide. We look forward to continuing to deliver our authentic hospitality to our guests, with now even more exciting destinations for past and first-time visitors to choose from.”

Sonesta is thoughtfully adding new hotels each year, taking great consideration to expand on the collection without compromising its commitment to authenticity and genuine hospitality. For more information about each property and new destination visit Sonesta.com/growth.

With this announcement, Sonesta ES Suites can now be found in 18 U.S. States.

Judd Property, an affiliate of the Hagger Group of Canoga Park, CA (Chad Hagger, principal) purchased A-Access Self Storage at 4070 E 29^th Street in Tucson for $1.9 million ($7,983 per unit).

The 31,415-square-foot self-storage facility with 238 units located sits on 2.75 acres, allowing room for expansion. A well-established Budget Truck rental business was also included in the transaction.

Located just off I-10 near the University of Arizona. The property was reported to be 85-90% occupied at time of sale with growing rental rates and stable financials. The buyer owns other self-storage businesses and has plans for expansion into semi-fixed and portable storage.

Michael Brazill and Roger Jeffries with Sun Commercial Real Estate in Las Vegas and Paul Miachika with Sun Commercial in Phoenix handled the transaction for the seller, A-Access Self Storage, LLC of Tucson (DR McMillin, manager) and the buyer.

To learn more Brazill can be reached at 702.968.7306, Jeffries at 702.968.7334 and Miachika can be called at 602.814.0661.

For additional information see RED Comp #3140.