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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>Form 8-K
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Current Report </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported):&nbsp;November 5, 2013 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>Griffin Capital Essential Asset REIT, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Commission
File Number:&nbsp;000-54377 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>MD</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>26-3335705</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>of incorporation)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2121 Rosecrans Avenue, Suite 3321 El Segundo, CA 90245 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address of principal executive offices, including zip code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>3104696100 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Registrant&#146;s telephone number, including area code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>None </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former name or
former address, if changed since last report) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><B>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><B>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><B>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B></B><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT><B></B><B></B></TD>
<TD ALIGN="left" VALIGN="top"><B>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </B></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Investment Grade Portfolio Purchase Agreement </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">On November&nbsp;5, 2013, Griffin Capital Essential Asset REIT, Inc. (the &#147;Registrant&#148;), through 18 special purpose entities (the
&#147;Borrower SPEs&#148;) wholly-owned by Griffin Capital Essential Asset Operating Partnership, L.P., the Registrant&#146;s operating partnership (the &#147;Operating Partnership&#148;) assumed the position as purchaser under a purchase and sale
agreement (the &#147;Portfolio Purchase Agreement&#148;) for the purchase of 18 office properties located in 11 states (collectively, the &#147;Investment Grade Portfolio&#148;). The description of the Portfolio Purchase Agreement contained in
Item&nbsp;2.01 of this report is qualified in its entirety by the Portfolio Purchase Agreement and the Third Amendment to Portfolio Purchase Agreement, which are attached hereto as Exhibits 10.1 and 10.2, respectively. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>KeyBank Term Loan </I></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">In connection
with the acquisition of the Investment Grade Portfolio, on November&nbsp;5, 2013, the Borrower SPEs entered into a loan agreement with KeyBank National Association (&#147;KeyBank&#148;) to partially fund the purchase price for such acquisition (the
&#147;KeyBank Term Loan&#148;). Subsequent to the acquisition of the Investment Grade Portfolio, the KeyBank Term Loan was syndicated to other participating lenders. The description of the KeyBank Term Loan contained in Item&nbsp;2.03 of this report
is qualified in its entirety by the relevant loan documents attached hereto as Exhibits 10.3 through 10.5. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Operating Partnership Equity Investment
</I></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">In connection with the acquisition of the Investment Grade Portfolio, on November&nbsp;5, 2013, the Operating Partnership and the
Registrant entered into a purchase agreement (the &#147;Unit Purchase Agreement&#148;) with an affiliate of Starwood Property Trust, Inc. (the &#147;Investor&#148;), pursuant to which the Investor provided an approximately $250,000,000 equity
investment in the Operating Partnership in exchange for 24,319,066 Series A Cumulative Redeemable Exchangeable Preferred Units of limited partnership interest (the &#147;Preferred Units&#148;) of the Operating Partnership. In addition to the Unit
Purchase Agreement, the Registrant entered into an Investor Rights Agreement, a Second Amended and Restated Limited Partnership Agreement of the Operating Partnership, Amendment No.&nbsp;1 to the Second Amended and Restated Limited Partnership
Agreement of the Operating Partnership (the &#147;Amendment&#148;), and a Board Observer and Indemnification Agreement. The proceeds of the investment in the Preferred Units was used to partially fund the purchase of the Investment Grade Portfolio
described further in Item&nbsp;2.01 below. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The following description is qualified in its entirety by the Unit Purchase Agreement, the
Investor Rights Agreement, the Second Amended and Restated Limited Partnership Agreement, the Amendment, and the Board Observer and Indemnification Agreement, attached hereto as Exhibits 10.6 through 10.10, respectively. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Second Amended and Restated Limited Partnership Agreement</U> </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Second Amended and Restated Limited Partnership Agreement authorizes the issuance of additional classes of units of limited partnership
interest, establishes a new series of preferred units of limited partnership interest and sets forth other necessary corresponding changes. All other terms of the Second Amended and Restated Limited Partnership Agreement remain substantially the
same. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Amendment No.&nbsp;1 to the Second Amended and Restated Limited Partnership Agreement</U> </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Amendment sets forth the key terms of the Preferred Units. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><I>Distribution Rate </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The
holders of the Preferred Units will receive distributions at a varying rate based upon the length of time the Preferred Units have been outstanding, as follows: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
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<TD ALIGN="left" VALIGN="top">From November&nbsp;5, 2013 through October&nbsp;31, 2015, a rate of LIBOR plus 7.25%&nbsp;per annum of the Liquidation Preference (defined below) per Preferred Unit; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">From November&nbsp;1, 2015 through October&nbsp;31, 2016, a rate of LIBOR plus 8.25%&nbsp;per annum of the Liquidation Preference per Preferred Unit; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">From November&nbsp;1, 2016 through October&nbsp;31, 2017, a rate of LIBOR plus 9.25%&nbsp;per annum of the Liquidation Preference per Preferred Unit; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">From November&nbsp;1, 2017 through October&nbsp;31, 2018, a rate of LIBOR plus 10.25%&nbsp;per annum of the Liquidation Preference per Preferred Unit; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Commencing November&nbsp;1, 2018 and each 12-month period thereafter, increases of 5%&nbsp;per annum. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">At all times, LIBOR will be subject to a minimum floor of 0.25%. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><I>Redemptions; Repurchases </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Preferred Units may be redeemed by the Operating Partnership, in whole or in part, at any time. The redemption price for the Preferred
Units will be equal to the sum of (i)&nbsp;$10.28 per Preferred Unit, plus all accumulated and unpaid distributions (the &#147;Liquidation Preference&#148;); (ii)&nbsp;1.81% of the Liquidation Preference; (iii)&nbsp;all accumulated and unpaid
distributions through the date of redemption, plus interest thereon; and (iv)&nbsp;if such redemption occurs within the first 24 months of the investment, with respect to the redemption of the first 75% of the Preferred Units, all distributions that
would have been payable from the date of redemption through the end of the 18th month of the investment, and, with respect to the redemption of the remaining 25% of the Preferred Units, all distributions that would have been payable from the date of
redemption through the end of the 24th month of the investment. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">A holder of Preferred Units may require the Operating Partnership to
repurchase the Preferred Units upon the occurrence of any of the following (each an &#147;Optional Repurchase Event&#148; and as defined within the Amendment): (A)&nbsp;a breach of any of the Protective Provisions; (B)&nbsp;an Event of Default;
(C)&nbsp;a Key Person Event; (D)&nbsp;a Change of Control that has not been consented to in accordance with the terms of the Amendment; (E)&nbsp;the failure of the Registrant to qualify as a REIT under the Internal Revenue Code; or (F)&nbsp;the
occurrence and continuance of a monetary or a material default beyond any applicable cure period under any of the loan documents for each of the properties in the Investment Grade Portfolio. The repurchase price for the Preferred Units will be equal
to the sum of (i)&nbsp;the Liquidation Preference; (ii)&nbsp;1.81% of the Liquidation Preference; (iii)&nbsp;all accumulated and unpaid distributions through the date of repurchase, plus interest thereon; and (iv)&nbsp;if such repurchase occurs
within the first 24 months of the investment, with respect to the repurchase of the first 75% of the Preferred Units, all distributions that would have been payable from the date of repurchase through the end of the 18th month of the investment,
and, with respect to the repurchase of the remaining 25% of the Preferred Units, all distributions that would have been payable from the date of repurchase through the end of the 24th month of the investment. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Beginning two years from the date of the Unit Purchase Agreement, for each six-month period, the
Operating Partnership will be required to repurchase a number of Preferred Units equal to the lesser of (i) 10% of the then-outstanding Preferred Units, or (ii)&nbsp;an aggregate Liquidation Preference of $25 million; provided, however, that such
repurchase will not be required if the aggregate value of the Preferred Units and the Registrant&#146;s outstanding indebtedness is less than 55% of the stabilized value of the Registrant&#146;s property portfolio, and such property portfolio is
generating a minimum debt yield of 14%. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><I>Exchange Rights </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Following the occurrence of an Optional Repurchase Event, Preferred Units will be exchangeable, at the option of the holder, into shares of
Preferred Stock (as defined and described in further detail below) at an exchange rate of one share of Preferred Stock for each Preferred Unit exchanged, subject to adjustment as described further in the Amendment. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><I>Covenants </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Amendment
contains a number of covenants of the Registrant and the Operating Partnership, including, but not limited to, certain covenants that limit the Operating Partnership&#146;s discretion in utilizing cash flows and require that distributions on the
Preferred Units be given priority over other disbursements, including distributions on Common Units and redemptions of the Registrant&#146;s shares, each under the circumstances outlined further in the Amendment. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Amendment also contains the following financial covenants (as defined therein and tested as of the close of each fiscal quarter beginning
with the quarter ending December&nbsp;31, 2013): </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">the maximum Senior Loan-to-Value Ratio on the Registrant&#146;s aggregate property portfolio shall be 54% during the 12&nbsp;month period following the date the Preferred Units were issued to the Investor and 50%
thereafter; and </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
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<TD ALIGN="left" VALIGN="top">the minimum Debt Yield shall be at least 13.5%. </TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><I>Events of Default </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The occurrence of any of the following shall constitute an Event of Default under the Amendment: (i)&nbsp;default in any payment to holders of
Preferred Units pursuant to the Amendment when such payment is due and payable; (ii)&nbsp;failure to make any of the repurchases as required every six months; (iii)&nbsp;material default in the performance of, or breach of, covenants, warranties, or
other agreements contained in the Amendment, the Unit Purchase Agreement, the Second Amended and Restated Limited Partnership Agreement, the Investor Rights Agreement, and certain other related agreements by the Operating Partnership, the
Registrant, or the Registrant&#146;s advisor, as applicable, which breach or default continues for 10 days after notice of such breach is received; (iv)&nbsp;an event of bankruptcy as to the Registrant or the Operating Partnership or their
subsidiaries; (v)&nbsp;a cross-default with certain of the Registrant&#146;s material indebtedness; (vi)&nbsp;certain material litigation; (vii)&nbsp;the termination or suspension of the broker/dealer&#146;s license of Griffin Capital Securities,
Inc., which, in the case of suspension, continues for 60 days after notice of such suspension is received; or (viii)&nbsp;the Registrant&#146;s failure to qualify as a REIT. During the continuance of an Event of Default, all amounts payable to
holders of outstanding Preferred Units, including distributions, will accrue at the lesser of (i)&nbsp;5%, plus the applicable distribution rate then in effect and (ii)&nbsp;the maximum rate permitted by applicable law. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><I>Protective Provisions </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Pursuant to the terms of the Amendment, the Registrant, the Operating Partnership, and their subsidiaries, are prohibited from undertaking the
following activities while the Preferred Units are outstanding without first obtaining the prior written consent of the holders of a majority of the Preferred Units then outstanding (capitalized terms are as defined in the Amendment): </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">authorizing or issuing additional (1)&nbsp;preferred stock or units that are equal to or senior to the Preferred Units with respect to certain rights and preferences, or (2)&nbsp;junior stock or units that interferes
with the rights of the Preferred Units; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">altering the terms of (1)&nbsp;the Amendment, the Unit Purchase Agreement, or any of the other related documents, or (2)&nbsp;the organizational documents of the Registrant, the Operating Partnership, or any of their
respective subsidiaries, to the extent the amendment would reasonably be expected to adversely affect the Preferred Units, or the Preferred Stock or the holders thereof, in the event that Preferred Units have been exchanged for shares of Preferred
Stock; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">incurring debt that would violate the financial covenants contained in the Unit Purchase Agreement or refinancing any debt that would result in a failure to meet the financial covenants set forth in the Amendment;
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">in the case of the Operating Partnership, redeeming junior equity securities, and in the case of the Registrant, its subsidiaries, and subsidiaries of the Operating Partnership, redeeming any equity securities, other
than (1)&nbsp;redemptions pursuant to the Registrant&#146;s share redemption program, (2)&nbsp;redemptions of units of limited partner interest of the Operating Partnership in exchange for shares of the Registrant&#146;s common stock, and
(3)&nbsp;redemptions that are required to be redeemed for cash only pursuant to existing contribution agreements and in an amount not to exceed $5 million; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">holding assets in another entity or engaging in business other than the business of the Registrant, the Operating Partnership, and their respective subsidiaries; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">engaging in affiliate transactions that could reasonably be expected to adversely affect the Preferred Units, or the Preferred Stock or the holders thereof, in the event that Preferred Units have been exchanged for
shares of Preferred Stock, other than (1)&nbsp;transactions described in the Registrant&#146;s advisory agreement and property management agreement, and (2)&nbsp;certain transactions already contemplated to be entered into by the Registrant;
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">engaging in a Change of Control; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">commencing or suffering to exist an event of bankruptcy as to the Operating Partnership, the Registrant, or any of their respective subsidiaries; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">paying any distributions, other than a distribution made on a regular monthly basis consistent with past practice on (1)&nbsp;in the case of the Operating Partnership, Common Units or other equity securities that rank,
as to distributions and upon liquidation, junior to the Preferred Units, and (2)&nbsp;in the case of the Registrant, its subsidiaries, or a subsidiary of the Operating Partnership, shares of common stock or common equity securities or other equity
securities that rank, as to distributions and upon liquidation, junior to such entity&#146;s shares of preferred stock or preferred equity securities; provided, however, that the foregoing shall not prohibit special distributions that are
(A)&nbsp;distributions of Net Operating Cash Flow or Net Capital Proceeds made pursuant to the Amendment or (B)&nbsp;necessary to preserve the Registrant&#146;s status as a REIT; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">engaging in a recapitalization, reorganization, merger, unit or stock split, statutory unit or stock exchange, sale of all or substantially all of such entity&#146;s assets, tender offer for all or substantially all of
its Common Units, shares of common stock or other common equity securities, as the case may be, or other similar transaction. </TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Investor Rights Agreement </U></I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><I>Preferred Stock Issuance </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Investor Rights Agreement provides the Investor with the right, upon the occurrence of an Optional Repurchase Event as outlined above, to
exchange the Preferred Units on a one for one basis for shares of the Registrant&#146;s preferred stock. The Registrant has placed in escrow (i)&nbsp;Articles Supplementary to the Registrant&#146;s Third Amended and Restated Charter, which Articles
Supplementary provide for the issuance of up to 24,319,066 shares of Series A Cumulative Voting Redeemable Preferred Stock (the &#147;Preferred Stock&#148;), (ii)&nbsp;stock certificates representing such issuance, and (iii)&nbsp;Amended and
Restated Bylaws of the Registrant. Upon an Optional Repurchase Event, the Investor may elect to cause the escrow agent to file the Articles Supplementary with the Maryland State Department of Assessments and Taxation, to release some or all of the
stock certificates to the Investor, and to release the Amended and Restated Bylaws. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Shares of Preferred Stock are subject to
substantially the same terms as the Preferred Units with respect to distributions, financial covenants, and protective provisions, each as outlined above. Shares of Preferred Stock will vote as a single class together with the shares of the
Registrant&#146;s common stock on all matters submitted to the Registrant&#146;s common stockholders, provided, however, that holders of shares of Preferred Stock will be entitled to vote separately as a class to elect additional directors to the
Registrant&#146;s board of directors (the &#147;Preferred Directors&#148;), such that the total number of Preferred Directors will represent a majority of the Registrant&#146;s directors. The remainder of the material rights, preferences, and
privileges of the Preferred Stock are the same as those of the Registrant&#146;s common stock. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Registrant&#146;s redemption of shares
of the Preferred Stock and a holder&#146;s election to cause the Registrant to repurchase shares of the Preferred Stock will each be subject to substantially the same terms as the redemption and repurchase of the Preferred Units, as outlined above.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Additionally, in the event that Preferred Units have been exchanged for shares of Preferred Stock, and the Operating Partnership
repurchases any of the Preferred Units from the Registrant, the Registrant is required to redeem or repurchase an equivalent number of shares of Preferred Stock. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><I>Board of Directors Participation </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Pursuant to the terms of the Investor Rights Agreement, the Investor is entitled to appoint a non-voting observer representative to attend and
participate in meetings of the Registrant&#146;s board of directors and committees thereof. Further, to the extent that shares of Preferred Stock are issued and outstanding, the holders of such stock (voting separately as a class) shall be entitled
to elect additional directors of the Registrant, such that the directors so elected will represent a majority of the directors of the Registrant at the time of the election, and the entire Board of Directors of the Registrant will be increased
accordingly. </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Board Observer and Indemnification Agreement </U></I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Board Observer and Indemnification Agreement sets forth the rights and obligations of the Investor&#146;s designated <FONT
STYLE="white-space:nowrap">non-voting</FONT> observer representative with respect to such individual&#146;s attendance at meetings of the Registrant&#146;s Board of Directors and committees thereof. Pursuant to the terms of the Board Observer and
Indemnification Agreement, the Registrant will indemnify and advance expenses and costs incurred by the non-voting observer representative in connection with any claims, suits or proceedings brought against such individual as a result of his
attendance at meetings of the Registrant&#146;s Board of Directors and committees thereof. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Additional Terms Related to Operating Partnership Equity
Investment </U></I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Registrant has entered into subordination agreements with respect to the Registrant&#146;s advisory agreement with
its advisor and property management agreements with its property manager. Pursuant to the terms of the subordination agreements, all payments due to the advisor and its affiliates and the property manager, as applicable, under such agreements are
subordinated to the rights of the Investor. Upon the occurrence of (i)&nbsp;an Optional Repurchase Event, (ii)&nbsp;any event that would give a party to the advisory agreement or property management agreements the right to terminate the respective
agreements, or (iii)&nbsp;any event that would give the Investor the right to terminate the respective agreements, the Investor may elect to either terminate or continue to enforce the respective agreements. The subordination agreements also provide
that, upon the occurrence of an Optional Repurchase Event, no payments will be made to the advisor or property manager under the advisory agreement or property management agreements, respectively. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">As reported in Item&nbsp;1.01 above, on November&nbsp;5, 2013, the Registrant, through the Borrower SPEs, entered into the Portfolio Purchase
Agreement. On November&nbsp;5, 2013, the Registrant closed on the acquisition of the Investment Grade Portfolio for an aggregate purchase price of approximately $521.5 million, plus closing costs and acquisition fees. The purchase price for the
Investment Grade Portfolio was funded with a combination of the issuance of the Preferred Units described in Item&nbsp;1.01 above, proceeds from the KeyBank Term Loan described below in Item&nbsp;2.03, and proceeds from the Registrant&#146;s public
offering. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Registrant&#146;s advisor is entitled to reimbursement of $2,607,500 in actual acquisition expenses incurred in connection
with the acquisition of the Investment Grade Portfolio. In addition, pursuant to an amendment to the advisory agreement, the Registrant&#146;s advisor will earn and be entitled to payment of $13,037,500 in acquisition fees related to the acquisition
at such time as the Registrant&#146;s aggregate property portfolio, including the Investment Grade Portfolio, has an overall debt-leverage of 50% or lower. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Registrant&#146;s portfolio now includes 41 wholly-owned properties in 18 states, consisting of approximately 8.8&nbsp;million rentable
square feet and an aggregate purchase price of approximately $1.1564 billion. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">A summary of the properties in the Investment Grade
Portfolio is as follows: </P>

<p Style='page-break-before:always'>
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<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


<TR>
<TD WIDTH="22%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="20%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="4%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:30.65pt; font-size:8pt; font-family:Times New Roman"><B>Property</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Major Lessee</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Credit</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Rating</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Major<BR>Lessee</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>%&nbsp;Leased<BR>by&nbsp;Major<BR>Lessee</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>%&nbsp;Leased</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Year<BR>Built/</B><br><B>Renovated</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Purchase</B><br><B>Price</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Approx.<BR>Square<BR>Feet</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Implied&nbsp;Initial<BR>Capitalization<BR>Rate<SUP STYLE="font-size:85%; vertical-align:top">(1)</SUP></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Annualized<BR>Gross Base<BR>Rent<SUP STYLE="font-size:85%; vertical-align:top">(2)</SUP></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Annualized<BR>Net&nbsp;Effective<BR>Rent per<BR>Square<BR>Foot<SUP STYLE="font-size:85%; vertical-align:top">(3)</SUP></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Year of<BR>Lease<BR>Expiration</B></TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Coca-Cola Refreshments</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Atlanta, GA</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Coca-Cola Refreshments USA</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">AA-<SUP STYLE="font-size:85%; vertical-align:top">(4)</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">94.3%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1985</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">56,700,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">315,900</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9.18</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,807,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16.47</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2018</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Atlanta Wildwood</B><SUP STYLE="font-size:85%; vertical-align:top">(5)</SUP></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Atlanta, GA</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Hyundai Capital USA/</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">BlueLinx</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">BBB+/</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">(N/A)</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">50%/<BR> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">100%</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">50%/<BR> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">100%</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1995/<BR> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">1995</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">28,000,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;<BR> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman">&nbsp;</P></TD>
<TD VALIGN="bottom" ALIGN="right">100,000/<BR> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="right">150,000</P></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;<BR> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman">&nbsp;&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9.86</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,501,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">11.04</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2023/<BR> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">2019</P></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>General Electric</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Atlanta, GA</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">General Electric Company</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">AA+</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1998</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">61,000,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">265,100</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7.06</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,306,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16.24</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2025</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Community Insurance</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Mason, OH</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Community Insurance Company</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">A+</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2003</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">23,500,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">223,500</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10.51</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,469,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">11.05</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2019</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Anthem</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Mason, OH</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Anthem Prescription Management</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">BBB+<SUP STYLE="font-size:85%; vertical-align:top">(6)</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1997</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">9,500,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">78,200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9.97</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">947,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">12.10</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2019</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>JPMorgan Chase</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Westerville, OH</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">JPMorgan Chase</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">A</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1972</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">44,500,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">388,700</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7.23</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,217,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">8.28</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2025</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>IBM</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Dublin, OH</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">IBM</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">AA-</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">87.6%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1990</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">37,300,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">322,700</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">11.2</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,177,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">12.95</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2020</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Aetna</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Arlington, TX</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Aetna Life Insurance Company</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">A+</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">86.7%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">94%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1998</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16,000,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">139,400</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7.7</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,568,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">8.84</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2020</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>CHRISTUS Health</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Irving, TX</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">CHRISTUS Health</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">A-</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">97.8%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1998</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">46,350,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">253,300</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6.87</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,972,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">12.57</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2024</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Roush Industries</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Allen Park, MI</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Roush Industries</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">(N/A)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2000</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">12,250,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">169,200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10.43</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,277,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7.55</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2015</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Eagle Rock Executive Office Center</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">East Hanover, NJ</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">GfK Holding, Inc.</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">(N/A)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">17.3%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">35.5%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1990</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,500,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">177,800</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2.82</TD>
<TD NOWRAP VALIGN="bottom">%)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,882,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">($</TD>
<TD VALIGN="bottom" ALIGN="right">1.03</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2022</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>College Park Plaza</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Indianapolis, IN</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Republic Airways Holdings</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">(N/A)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">42.3%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">82.2%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1998</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,400,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">179,500</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14.76</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,652,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6.08</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2014</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Wells Fargo</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Milwaukee, WI</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Wells Fargo Bank, N.A.</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">AA-</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1990</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">26,000,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">229,600</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">8.04</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,969,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">9.11</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2019</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>One Century Place</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Nashville, TN</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Willis North America</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">BBB-</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">32.0%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">89.6%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1991</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">70,000,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">538,800</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5.71</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">8,880,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7.42</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2026</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Shire Pharmaceuticals</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Wayne, PA</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Shire Pharmaceuticals, Inc.</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">(N/A)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1985</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">21,500,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">114,100</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10.56</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,023,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">19.90</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2017</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Comcast (Northpointe Corporate Center I)</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Lynwood, WA</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Comcast Corporation</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">A-</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2007</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">27,000,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">87,400</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><SUP STYLE="font-size:85%; vertical-align:top"></SUP>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5.75<SUP STYLE="font-size:85%; vertical-align:top"></SUP></TD>
<TD NOWRAP VALIGN="bottom">%<SUP STYLE="font-size:85%; vertical-align:top">(7)</SUP>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,087,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">9.93</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2017</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Northpointe Corporate Center II</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Lynwood, WA</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">Vacant</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">(N/A)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">(N/A)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2007</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><SUP STYLE="font-size:85%; vertical-align:top"></SUP>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"><SUP STYLE="font-size:85%; vertical-align:top"></SUP>&nbsp;</TD>
<TD NOWRAP VALIGN="bottom"><SUP STYLE="font-size:85%; vertical-align:top">(8)</SUP>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">69,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(N/A</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(N/A</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(N/A</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">(N/A)</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>United HealthCare</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">St. Louis, MO</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman">United HealthCare Services</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">A<SUP STYLE="font-size:85%; vertical-align:top">(9)</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">100%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1998</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">28,000,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">188,500</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9.81</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,746,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">14.57</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2018</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:8pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>521,500,000</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>3,990,700</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>8.12</B></TD>
<TD NOWRAP VALIGN="bottom"><B>%&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>72,166,000</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>10.61</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(1</SUP><SUP STYLE="font-size:85%; vertical-align:top">)</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The estimated Implied Initial Capitalization Rate is determined by dividing the projected net rental payment for the first fiscal year the Registrant owns the property by the acquisition price (exclusive of closing and
offering costs). Generally, pursuant to each lease, if the tenant is responsible for the payment of all property operating expenses, insurance and taxes, the net rental payment by the tenant to the landlord is equivalent to the base rental payment.
The projected net rental payment includes assumptions that may not be indicative of the actual future performance of a property, including the assumption that the tenant will perform its obligations under its lease agreement during the next 12
months. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(2)</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The gross base rent is the contractual rental payments for existing tenants and projected rental payments for future tenants for the twelve-month period subsequent to November&nbsp;1, 2013, taking into consideration
contractual rent increases for the period presented. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(3)</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The net effective rent per square foot is calculated by dividing the net effective rent by the square footage for each property listed in the table above, taking into account rent concessions and abatements which are
offset by any credits provided therefor by the seller as part of the acquisition. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(4)</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Credit rating of parent company The Coca Cola Company. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(5)</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Property contains two separate buildings. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(6)</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Credit rating of parent company Express Scripts. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(7)</SUP></TD>
<TD ALIGN="left" VALIGN="top"><SUP STYLE="font-size:85%; vertical-align:top"></SUP>Capitalization rate and operating information based on the combined operating projection and purchase price of Comcast (Northpointe Center I) and Northpointe
Corporate Center II. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(8)</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Included in Comcast (Northpointe Corporate Center I) purchase price. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">(9)</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Credit rating of parent company UnitedHealth Group, Inc. </TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Griffin Capital Essential Asset Property Management, LLC, an affiliate of the Registrant, will
manage the properties in the Investment Grade Portfolio and will be paid management fees in an amount of 3% of the gross monthly revenues collected from the properties in the Investment Grade Portfolio. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">As reported in Item&nbsp;1.01 above, to partially finance the acquisition of the Investment Grade Portfolio, the Registrant, through the
Borrower SPEs, obtained $300 million in debt pursuant to the KeyBank Term Loan. The KeyBank Term Loan had an initial funding of $282 million, with an $18 million holdback available to fund future tenant improvements and leasing costs for the
Mortgaged Properties (as defined below). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The amount drawn under the KeyBank Term Loan will bear interest at the option of the Borrower
SPEs of either the Alternate Base Rate plus the Applicable Rate or the Adjusted LIBO Rate plus the Applicable Rate (each as defined in the KeyBank Term Loan). The Borrower SPEs elected to have the Adjusted LIBO Rate plus the Applicable Rate apply to
the initial draw, which equated to an initial interest rate of approximately 2.2%. The KeyBank Term Loan has a term of three years, maturing on November&nbsp;5, 2016, subject to two, one-year extension options (subject to the fulfillment of certain
conditions), and requires monthly interest-only payments. The KeyBank Term Loan may be terminated or prepaid, in whole or in part, at any time without fees or penalty, provided that the Borrower SPEs will indemnify KeyBank for any breakage costs
associated with any LIBOR borrowings. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Operating Partnership paid a commitment fee of 1.25% of the maximum loan amount in connection
with the KeyBank Term Loan. The Operating Partnership will also pay an annual administrative fee of $35,000 that is payable quarterly and, upon the exercise of any extension of the KeyBank Term Loan, a fee of 0.25% of the then-outstanding loan
amount. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The KeyBank Term Loan is secured by cross-collateralized, first mortgage liens on the properties comprising the Investment Grade
Portfolio (the &#147;Mortgaged Properties&#148;). The Registrant has provided a standard non-recourse carveout guaranty and environmental indemnification related to the KeyBank Term Loan. </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mortgaged Properties may be released in accordance with the following release prices:
(i)&nbsp;100% of the allocated loan amount (established at closing for each of the properties included in the Investment Grade Portfolio) if (a)&nbsp;the Pool DSCR (as defined in the KeyBank Term Loan) is 1.60x or greater for the Mortgaged
Properties remaining as collateral and (b)&nbsp;at least four Mortgaged Properties remain after such release; (ii)&nbsp;115% of the allocated loan amount if (a)&nbsp;the Pool DSCR is less than 1.60x for the Mortgaged Properties remaining as
collateral and (b)&nbsp;at least four Mortgaged Properties remain after such release; or (iii)&nbsp;if fewer than four Mortgaged Properties remain after such release, the greater of (a)&nbsp;125% of the allocated loan amount or (b)&nbsp;if the
Mortgaged Property in question is being sold, 100% of net sales proceeds. The release of Mortgaged Properties is subject to additional conditions outlined in further detail in the KeyBank Term Loan, including a requirement that the Pool DSCR shall
not decline as a result of the release of a Mortgaged Property; provided, however, that the Borrower SPEs shall have the right to make an additional principal prepayment in order to satisfy this requirement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The KeyBank Term Loan contains a number of customary representations, warranties, indemnities, and covenants, including, but not limited to,
the following: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The Borrower SPEs will calculate the Pool DSCR quarterly and are subject to the following commitments: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(i)</TD>
<TD ALIGN="left" VALIGN="top">If the Pool DSCR is less than 1.25x, the Borrower SPEs must fund all excess cash flow after debt service on a monthly basis into a cash collateral reserve account with KeyBank. These funds may be released to the
Borrower SPEs upon achievement of a Pool DSCR of 1.25x or greater for two consecutive quarters. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(ii)</TD>
<TD ALIGN="left" VALIGN="top">If the Pool DSCR falls below 1.20x, the Borrower SPEs will make a principal payment (or post other cash collateral) in an amount to bring the Pool DSCR up to no less than 1.30x. Any collateral will be released upon the
achievement of the required 1.30x Pool DSCR for two consecutive quarters. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Beginning in month 25 and each month thereafter, the Borrower SPEs will fund a leasing reserve account in equal monthly installments in an amount sufficient to cover budgeted tenant improvements and leasing commissions
for the year commencing 12 months forward, in keeping with KeyBank&#146;s budget. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">KeyBank must approve all leases and material amendments to any leases of property between 50,000 and 200,000 square feet. Majority Lenders (as such term is defined in the KeyBank Term Loan) must approve all leases of
property greater than 200,000 square feet. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The Borrower SPEs may not incur debt or recourse obligations other than the KeyBank Term Loan. Likewise, a Borrower SPE may not dissolve, terminate, merge, or consolidate itself or transfer in any way its ownership
interest in the Investment Grade Portfolio. </TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;9.01 Financial Statements and Exhibits </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a) Financial Statements of Real Estate Acquired. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Since it is impracticable to provide the required financial statements for the acquired real estate described in Item&nbsp;2.01 at the time of
this filing and no financials (audited or unaudited) are available at this time, the Registrant hereby confirms that it intends to file the required financial statements on or before January&nbsp;22, 2014 by amendment to this Form 8-K. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) See paragraph (a)&nbsp;above. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d) Exhibits. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.1</TD>
<TD ALIGN="left" VALIGN="top">Portfolio Purchase Agreement </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.2</TD>
<TD ALIGN="left" VALIGN="top">Third Amendment to Portfolio Purchase Agreement </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.3</TD>
<TD ALIGN="left" VALIGN="top">KeyBank Term Loan Credit Agreement </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.4</TD>
<TD ALIGN="left" VALIGN="top">KeyBank Term Loan Form of Promissory Note </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.5</TD>
<TD ALIGN="left" VALIGN="top">Guaranty of Griffin Capital Essential Asset REIT, Inc. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.6</TD>
<TD ALIGN="left" VALIGN="top">Unit Purchase Agreement </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.7</TD>
<TD ALIGN="left" VALIGN="top">Investor Rights Agreement </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.8</TD>
<TD ALIGN="left" VALIGN="top">Second Amended and Restated Limited Partnership Agreement of Griffin Capital Essential Asset Operating Partnership, L.P. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.9</TD>
<TD ALIGN="left" VALIGN="top">Amendment No.&nbsp;1 to Second Amended and Restated Limited Partnership Agreement of Griffin Capital Essential Asset Operating Partnership, L.P. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">10.10</TD>
<TD ALIGN="left" VALIGN="top">Board Observer and Indemnification Agreement </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Signature(s) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom"><B>Griffin Capital Essential Asset REIT, Inc.</B></TD></TR>
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<TD VALIGN="top">Date: November&nbsp;12, 2013</TD>
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<TD VALIGN="bottom" ALIGN="right">By:</TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Joseph E. Miller</P></TD></TR>
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<TD VALIGN="bottom">Joseph E. Miller</TD></TR>
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<TD VALIGN="bottom">Chief Financial Officer</TD></TR>
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</BODY></HTML>
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{"company-data": {"conformed-name": "Griffin Capital Essential Asset REIT, Inc.", "cik": "0001456016", "assigned-sic": "6798", "irs-number": "263335705", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-54377", "film-number": "131210494"}, "business-address": {"street1": "2121 ROSECRANS AVENUE", "street2": "SUITE 3321", "city": "EL SEGUNDO", "state": "CA", "zip": "90245", "phone": "310-606-5900"}, "mail-address": {"street1": "2121 ROSECRANS AVENUE", "street2": "SUITE 3321", "city": "EL SEGUNDO", "state": "CA", "zip": "90245"}, "former-company": [{"former-conformed-name": "Griffin Capital Net Lease REIT, Inc.", "date-changed": "20110712"}, {"former-conformed-name": "GC NET LEASE REIT, INC.", "date-changed": "20090507"}, {"former-conformed-name": "GC NET LEASE REIT INC", "date-changed": "20090211"}]}
8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2013
Griffin Capital Essential Asset REIT, Inc.
(Exact name of registrant as specified in its charter)
Commission
File Number: 000-54377
MD
26-3335705
(State or other jurisdiction
of incorporation)
(IRS Employer
Identification No.)
2121 Rosecrans Avenue, Suite 3321 El Segundo, CA 90245
(Address of principal executive offices, including zip code)
3104696100
(Registrant's telephone number, including area code)
None
(Former name or
former address, if changed since last report)
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement
Investment Grade Portfolio Purchase Agreement
On November 5, 2013, Griffin Capital Essential Asset REIT, Inc. (the "Registrant"), through 18 special purpose entities (the
"Borrower SPEs") wholly-owned by Griffin Capital Essential Asset Operating Partnership, L.P., the Registrant's operating partnership (the "Operating Partnership") assumed the position as purchaser under a purchase and sale
agreement (the "Portfolio Purchase Agreement") for the purchase of 18 office properties located in 11 states (collectively, the "Investment Grade Portfolio"). The description of the Portfolio Purchase Agreement contained in
Item 2.01 of this report is qualified in its entirety by the Portfolio Purchase Agreement and the Third Amendment to Portfolio Purchase Agreement, which are attached hereto as Exhibits 10.1 and 10.2, respectively.
KeyBank Term Loan
In connection
with the acquisition of the Investment Grade Portfolio, on November 5, 2013, the Borrower SPEs entered into a loan agreement with KeyBank National Association ("KeyBank") to partially fund the purchase price for such acquisition (the
"KeyBank Term Loan"). Subsequent to the acquisition of the Investment Grade Portfolio, the KeyBank Term Loan was syndicated to other participating lenders. The description of the KeyBank Term Loan contained in Item 2.03 of this report
is qualified in its entirety by the relevant loan documents attached hereto as Exhibits 10.3 through 10.5.
Operating Partnership Equity Investment
In connection with the acquisition of the Investment Grade Portfolio, on November 5, 2013, the Operating Partnership and the
Registrant entered into a purchase agreement (the "Unit Purchase Agreement") with an affiliate of Starwood Property Trust, Inc. (the "Investor"), pursuant to which the Investor provided an approximately $250,000,000 equity
investment in the Operating Partnership in exchange for 24,319,066 Series A Cumulative Redeemable Exchangeable Preferred Units of limited partnership interest (the "Preferred Units") of the Operating Partnership. In addition to the Unit
Purchase Agreement, the Registrant entered into an Investor Rights Agreement, a Second Amended and Restated Limited Partnership Agreement of the Operating Partnership, Amendment No. 1 to the Second Amended and Restated Limited Partnership
Agreement of the Operating Partnership (the "Amendment"), and a Board Observer and Indemnification Agreement. The proceeds of the investment in the Preferred Units was used to partially fund the purchase of the Investment Grade Portfolio
described further in Item 2.01 below.
The following description is qualified in its entirety by the Unit Purchase Agreement, the
Investor Rights Agreement, the Second Amended and Restated Limited Partnership Agreement, the Amendment, and the Board Observer and Indemnification Agreement, attached hereto as Exhibits 10.6 through 10.10, respectively.
Second Amended and Restated Limited Partnership Agreement
The Second Amended and Restated Limited Partnership Agreement authorizes the issuance of additional classes of units of limited partnership
interest, establishes a new series of preferred units of limited partnership interest and sets forth other necessary corresponding changes. All other terms of the Second Amended and Restated Limited Partnership Agreement remain substantially the
same.
Amendment No. 1 to the Second Amended and Restated Limited Partnership Agreement
The Amendment sets forth the key terms of the Preferred Units.
Distribution Rate
The
holders of the Preferred Units will receive distributions at a varying rate based upon the length of time the Preferred Units have been outstanding, as follows:
•
From November 5, 2013 through October 31, 2015, a rate of LIBOR plus 7.25% per annum of the Liquidation Preference (defined below) per Preferred Unit;
•
From November 1, 2015 through October 31, 2016, a rate of LIBOR plus 8.25% per annum of the Liquidation Preference per Preferred Unit;
•
From November 1, 2016 through October 31, 2017, a rate of LIBOR plus 9.25% per annum of the Liquidation Preference per Preferred Unit;
•
From November 1, 2017 through October 31, 2018, a rate of LIBOR plus 10.25% per annum of the Liquidation Preference per Preferred Unit; and
•
Commencing November 1, 2018 and each 12-month period thereafter, increases of 5% per annum.
At all times, LIBOR will be subject to a minimum floor of 0.25%.
Redemptions; Repurchases
The Preferred Units may be redeemed by the Operating Partnership, in whole or in part, at any time. The redemption price for the Preferred
Units will be equal to the sum of (i) $10.28 per Preferred Unit, plus all accumulated and unpaid distributions (the "Liquidation Preference"); (ii) 1.81% of the Liquidation Preference; (iii) all accumulated and unpaid
distributions through the date of redemption, plus interest thereon; and (iv) if such redemption occurs within the first 24 months of the investment, with respect to the redemption of the first 75% of the Preferred Units, all distributions that
would have been payable from the date of redemption through the end of the 18th month of the investment, and, with respect to the redemption of the remaining 25% of the Preferred Units, all distributions that would have been payable from the date of
redemption through the end of the 24th month of the investment.
A holder of Preferred Units may require the Operating Partnership to
repurchase the Preferred Units upon the occurrence of any of the following (each an "Optional Repurchase Event" and as defined within the Amendment): (A) a breach of any of the Protective Provisions; (B) an Event of Default;
(C) a Key Person Event; (D) a Change of Control that has not been consented to in accordance with the terms of the Amendment; (E) the failure of the Registrant to qualify as a REIT under the Internal Revenue Code; or (F) the
occurrence and continuance of a monetary or a material default beyond any applicable cure period under any of the loan documents for each of the properties in the Investment Grade Portfolio. The repurchase price for the Preferred Units will be equal
to the sum of (i) the Liquidation Preference; (ii) 1.81% of the Liquidation Preference; (iii) all accumulated and unpaid distributions through the date of repurchase, plus interest thereon; and (iv) if such repurchase occurs
within the first 24 months of the investment, with respect to the repurchase of the first 75% of the Preferred Units, all distributions that would have been payable from the date of repurchase through the end of the 18th month of the investment,
and, with respect to the repurchase of the remaining 25% of the Preferred Units, all distributions that would have been payable from the date of repurchase through the end of the 24th month of the investment.
Beginning two years from the date of the Unit Purchase Agreement, for each six-month period, the
Operating Partnership will be required to repurchase a number of Preferred Units equal to the lesser of (i) 10% of the then-outstanding Preferred Units, or (ii) an aggregate Liquidation Preference of $25 million; provided, however, that such
repurchase will not be required if the aggregate value of the Preferred Units and the Registrant's outstanding indebtedness is less than 55% of the stabilized value of the Registrant's property portfolio, and such property portfolio is
generating a minimum debt yield of 14%.
Exchange Rights
Following the occurrence of an Optional Repurchase Event, Preferred Units will be exchangeable, at the option of the holder, into shares of
Preferred Stock (as defined and described in further detail below) at an exchange rate of one share of Preferred Stock for each Preferred Unit exchanged, subject to adjustment as described further in the Amendment.
Covenants
The Amendment
contains a number of covenants of the Registrant and the Operating Partnership, including, but not limited to, certain covenants that limit the Operating Partnership's discretion in utilizing cash flows and require that distributions on the
Preferred Units be given priority over other disbursements, including distributions on Common Units and redemptions of the Registrant's shares, each under the circumstances outlined further in the Amendment.
The Amendment also contains the following financial covenants (as defined therein and tested as of the close of each fiscal quarter beginning
with the quarter ending December 31, 2013):
•
the maximum Senior Loan-to-Value Ratio on the Registrant's aggregate property portfolio shall be 54% during the 12 month period following the date the Preferred Units were issued to the Investor and 50%
thereafter; and
•
the minimum Debt Yield shall be at least 13.5%.
Events of Default
The occurrence of any of the following shall constitute an Event of Default under the Amendment: (i) default in any payment to holders of
Preferred Units pursuant to the Amendment when such payment is due and payable; (ii) failure to make any of the repurchases as required every six months; (iii) material default in the performance of, or breach of, covenants, warranties, or
other agreements contained in the Amendment, the Unit Purchase Agreement, the Second Amended and Restated Limited Partnership Agreement, the Investor Rights Agreement, and certain other related agreements by the Operating Partnership, the
Registrant, or the Registrant's advisor, as applicable, which breach or default continues for 10 days after notice of such breach is received; (iv) an event of bankruptcy as to the Registrant or the Operating Partnership or their
subsidiaries; (v) a cross-default with certain of the Registrant's material indebtedness; (vi) certain material litigation; (vii) the termination or suspension of the broker/dealer's license of Griffin Capital Securities,
Inc., which, in the case of suspension, continues for 60 days after notice of such suspension is received; or (viii) the Registrant's failure to qualify as a REIT. During the continuance of an Event of Default, all amounts payable to
holders of outstanding Preferred Units, including distributions, will accrue at the lesser of (i) 5%, plus the applicable distribution rate then in effect and (ii) the maximum rate permitted by applicable law.
Protective Provisions
Pursuant to the terms of the Amendment, the Registrant, the Operating Partnership, and their subsidiaries, are prohibited from undertaking the
following activities while the Preferred Units are outstanding without first obtaining the prior written consent of the holders of a majority of the Preferred Units then outstanding (capitalized terms are as defined in the Amendment):
•
authorizing or issuing additional (1) preferred stock or units that are equal to or senior to the Preferred Units with respect to certain rights and preferences, or (2) junior stock or units that interferes
with the rights of the Preferred Units;
•
altering the terms of (1) the Amendment, the Unit Purchase Agreement, or any of the other related documents, or (2) the organizational documents of the Registrant, the Operating Partnership, or any of their
respective subsidiaries, to the extent the amendment would reasonably be expected to adversely affect the Preferred Units, or the Preferred Stock or the holders thereof, in the event that Preferred Units have been exchanged for shares of Preferred
Stock;
•
incurring debt that would violate the financial covenants contained in the Unit Purchase Agreement or refinancing any debt that would result in a failure to meet the financial covenants set forth in the Amendment;
•
in the case of the Operating Partnership, redeeming junior equity securities, and in the case of the Registrant, its subsidiaries, and subsidiaries of the Operating Partnership, redeeming any equity securities, other
than (1) redemptions pursuant to the Registrant's share redemption program, (2) redemptions of units of limited partner interest of the Operating Partnership in exchange for shares of the Registrant's common stock, and
(3) redemptions that are required to be redeemed for cash only pursuant to existing contribution agreements and in an amount not to exceed $5 million;
•
holding assets in another entity or engaging in business other than the business of the Registrant, the Operating Partnership, and their respective subsidiaries;
•
engaging in affiliate transactions that could reasonably be expected to adversely affect the Preferred Units, or the Preferred Stock or the holders thereof, in the event that Preferred Units have been exchanged for
shares of Preferred Stock, other than (1) transactions described in the Registrant's advisory agreement and property management agreement, and (2) certain transactions already contemplated to be entered into by the Registrant;
•
engaging in a Change of Control;
•
commencing or suffering to exist an event of bankruptcy as to the Operating Partnership, the Registrant, or any of their respective subsidiaries;
•
paying any distributions, other than a distribution made on a regular monthly basis consistent with past practice on (1) in the case of the Operating Partnership, Common Units or other equity securities that rank,
as to distributions and upon liquidation, junior to the Preferred Units, and (2) in the case of the Registrant, its subsidiaries, or a subsidiary of the Operating Partnership, shares of common stock or common equity securities or other equity
securities that rank, as to distributions and upon liquidation, junior to such entity's shares of preferred stock or preferred equity securities; provided, however, that the foregoing shall not prohibit special distributions that are
(A) distributions of Net Operating Cash Flow or Net Capital Proceeds made pursuant to the Amendment or (B) necessary to preserve the Registrant's status as a REIT; and
•
engaging in a recapitalization, reorganization, merger, unit or stock split, statutory unit or stock exchange, sale of all or substantially all of such entity's assets, tender offer for all or substantially all of
its Common Units, shares of common stock or other common equity securities, as the case may be, or other similar transaction.
Investor Rights Agreement
Preferred Stock Issuance
The Investor Rights Agreement provides the Investor with the right, upon the occurrence of an Optional Repurchase Event as outlined above, to
exchange the Preferred Units on a one for one basis for shares of the Registrant's preferred stock. The Registrant has placed in escrow (i) Articles Supplementary to the Registrant's Third Amended and Restated Charter, which Articles
Supplementary provide for the issuance of up to 24,319,066 shares of Series A Cumulative Voting Redeemable Preferred Stock (the "Preferred Stock"), (ii) stock certificates representing such issuance, and (iii) Amended and
Restated Bylaws of the Registrant. Upon an Optional Repurchase Event, the Investor may elect to cause the escrow agent to file the Articles Supplementary with the Maryland State Department of Assessments and Taxation, to release some or all of the
stock certificates to the Investor, and to release the Amended and Restated Bylaws.
Shares of Preferred Stock are subject to
substantially the same terms as the Preferred Units with respect to distributions, financial covenants, and protective provisions, each as outlined above. Shares of Preferred Stock will vote as a single class together with the shares of the
Registrant's common stock on all matters submitted to the Registrant's common stockholders, provided, however, that holders of shares of Preferred Stock will be entitled to vote separately as a class to elect additional directors to the
Registrant's board of directors (the "Preferred Directors"), such that the total number of Preferred Directors will represent a majority of the Registrant's directors. The remainder of the material rights, preferences, and
privileges of the Preferred Stock are the same as those of the Registrant's common stock.
The Registrant's redemption of shares
of the Preferred Stock and a holder's election to cause the Registrant to repurchase shares of the Preferred Stock will each be subject to substantially the same terms as the redemption and repurchase of the Preferred Units, as outlined above.
Additionally, in the event that Preferred Units have been exchanged for shares of Preferred Stock, and the Operating Partnership
repurchases any of the Preferred Units from the Registrant, the Registrant is required to redeem or repurchase an equivalent number of shares of Preferred Stock.
Board of Directors Participation
Pursuant to the terms of the Investor Rights Agreement, the Investor is entitled to appoint a non-voting observer representative to attend and
participate in meetings of the Registrant's board of directors and committees thereof. Further, to the extent that shares of Preferred Stock are issued and outstanding, the holders of such stock (voting separately as a class) shall be entitled
to elect additional directors of the Registrant, such that the directors so elected will represent a majority of the directors of the Registrant at the time of the election, and the entire Board of Directors of the Registrant will be increased
accordingly.
Board Observer and Indemnification Agreement
The Board Observer and Indemnification Agreement sets forth the rights and obligations of the Investor's designated
non-voting
observer representative with respect to such individual's attendance at meetings of the Registrant's Board of Directors and committees thereof. Pursuant to the terms of the Board Observer and
Indemnification Agreement, the Registrant will indemnify and advance expenses and costs incurred by the non-voting observer representative in connection with any claims, suits or proceedings brought against such individual as a result of his
attendance at meetings of the Registrant's Board of Directors and committees thereof.
Additional Terms Related to Operating Partnership Equity
Investment
The Registrant has entered into subordination agreements with respect to the Registrant's advisory agreement with
its advisor and property management agreements with its property manager. Pursuant to the terms of the subordination agreements, all payments due to the advisor and its affiliates and the property manager, as applicable, under such agreements are
subordinated to the rights of the Investor. Upon the occurrence of (i) an Optional Repurchase Event, (ii) any event that would give a party to the advisory agreement or property management agreements the right to terminate the respective
agreements, or (iii) any event that would give the Investor the right to terminate the respective agreements, the Investor may elect to either terminate or continue to enforce the respective agreements. The subordination agreements also provide
that, upon the occurrence of an Optional Repurchase Event, no payments will be made to the advisor or property manager under the advisory agreement or property management agreements, respectively.
Item 2.01 Completion of Acquisition or Disposition of Assets
As reported in Item 1.01 above, on November 5, 2013, the Registrant, through the Borrower SPEs, entered into the Portfolio Purchase
Agreement. On November 5, 2013, the Registrant closed on the acquisition of the Investment Grade Portfolio for an aggregate purchase price of approximately $521.5 million, plus closing costs and acquisition fees. The purchase price for the
Investment Grade Portfolio was funded with a combination of the issuance of the Preferred Units described in Item 1.01 above, proceeds from the KeyBank Term Loan described below in Item 2.03, and proceeds from the Registrant's public
offering.
The Registrant's advisor is entitled to reimbursement of $2,607,500 in actual acquisition expenses incurred in connection
with the acquisition of the Investment Grade Portfolio. In addition, pursuant to an amendment to the advisory agreement, the Registrant's advisor will earn and be entitled to payment of $13,037,500 in acquisition fees related to the acquisition
at such time as the Registrant's aggregate property portfolio, including the Investment Grade Portfolio, has an overall debt-leverage of 50% or lower.
The Registrant's portfolio now includes 41 wholly-owned properties in 18 states, consisting of approximately 8.8 million rentable
square feet and an aggregate purchase price of approximately $1.1564 billion.
A summary of the properties in the Investment Grade
Portfolio is as follows:
Property
Major Lessee
Credit
Rating
of
Major
Lessee
% Leased
by Major
Lessee
% Leased
Year
Built/
Renovated
Purchase
Price
Approx.
Square
Feet
Implied Initial
Capitalization
Rate
(1)
Annualized
Gross Base
Rent
(2)
Annualized
Net Effective
Rent per
Square
Foot
(3)
Year of
Lease
Expiration
Coca-Cola Refreshments
Atlanta, GA
Coca-Cola Refreshments USA
AA-
(4)
94.3%
100%
1985
$
56,700,000
315,900
9.18
%
$
4,807,000
$
16.47
2018
Atlanta Wildwood
(5)
Atlanta, GA
Hyundai Capital USA/
BlueLinx
BBB+/
(N/A)
50%/
100%
50%/
100%
1995/
1995
$
28,000,000
100,000/
150,000
9.86
%
$
3,501,000
$
11.04
2023/
2019
General Electric
Atlanta, GA
General Electric Company
AA+
100%
100%
1998
$
61,000,000
265,100
7.06
%
$
4,306,000
$
16.24
2025
Community Insurance
Mason, OH
Community Insurance Company
A+
100%
100%
2003
$
23,500,000
223,500
10.51
%
$
2,469,000
$
11.05
2019
Anthem
Mason, OH
Anthem Prescription Management
BBB+
(6)
100%
100%
1997
$
9,500,000
78,200
9.97
%
$
947,000
$
12.10
2019
JPMorgan Chase
Westerville, OH
JPMorgan Chase
A
100%
100%
1972
$
44,500,000
388,700
7.23
%
$
3,217,000
$
8.28
2025
IBM
Dublin, OH
IBM
AA-
87.6%
100%
1990
$
37,300,000
322,700
11.2
%
$
4,177,000
$
12.95
2020
Aetna
Arlington, TX
Aetna Life Insurance Company
A+
86.7%
94%
1998
$
16,000,000
139,400
7.7
%
$
2,568,000
$
8.84
2020
CHRISTUS Health
Irving, TX
CHRISTUS Health
A-
97.8%
100%
1998
$
46,350,000
253,300
6.87
%
$
4,972,000
$
12.57
2024
Roush Industries
Allen Park, MI
Roush Industries
(N/A)
100%
100%
2000
$
12,250,000
169,200
10.43
%
$
1,277,000
$
7.55
2015
Eagle Rock Executive Office Center
East Hanover, NJ
GfK Holding, Inc.
(N/A)
17.3%
35.5%
1990
$
6,500,000
177,800
(2.82
%)
$
2,882,000
($
1.03
)
2022
College Park Plaza
Indianapolis, IN
Republic Airways Holdings
(N/A)
42.3%
82.2%
1998
$
7,400,000
179,500
14.76
%
$
2,652,000
$
6.08
2014
Wells Fargo
Milwaukee, WI
Wells Fargo Bank, N.A.
AA-
100%
100%
1990
$
26,000,000
229,600
8.04
%
$
3,969,000
$
9.11
2019
One Century Place
Nashville, TN
Willis North America
BBB-
32.0%
89.6%
1991
$
70,000,000
538,800
5.71
%
$
8,880,000
$
7.42
2026
Shire Pharmaceuticals
Wayne, PA
Shire Pharmaceuticals, Inc.
(N/A)
100%
100%
1985
$
21,500,000
114,100
10.56
%
$
3,023,000
$
19.90
2017
Comcast (Northpointe Corporate Center I)
Lynwood, WA
Comcast Corporation
A-
100%
100%
2007
$
27,000,000
87,400
5.75
%
(7)
$
2,087,000
$
9.93
2017
Northpointe Corporate Center II
Lynwood, WA
Vacant
(N/A)
(N/A)
0%
2007
(8)
69,000
(N/A
)
(N/A
)
(N/A
)
(N/A)
United HealthCare
St. Louis, MO
United HealthCare Services
A
(9)
100%
100%
1998
$
28,000,000
188,500
9.81
%
$
2,746,000
$
14.57
2018
Total
$
521,500,000
3,990,700
8.12
%
$
72,166,000
$
10.61
(1
)
The estimated Implied Initial Capitalization Rate is determined by dividing the projected net rental payment for the first fiscal year the Registrant owns the property by the acquisition price (exclusive of closing and
offering costs). Generally, pursuant to each lease, if the tenant is responsible for the payment of all property operating expenses, insurance and taxes, the net rental payment by the tenant to the landlord is equivalent to the base rental payment.
The projected net rental payment includes assumptions that may not be indicative of the actual future performance of a property, including the assumption that the tenant will perform its obligations under its lease agreement during the next 12
months.
(2)
The gross base rent is the contractual rental payments for existing tenants and projected rental payments for future tenants for the twelve-month period subsequent to November 1, 2013, taking into consideration
contractual rent increases for the period presented.
(3)
The net effective rent per square foot is calculated by dividing the net effective rent by the square footage for each property listed in the table above, taking into account rent concessions and abatements which are
offset by any credits provided therefor by the seller as part of the acquisition.
(4)
Credit rating of parent company The Coca Cola Company.
(5)
Property contains two separate buildings.
(6)
Credit rating of parent company Express Scripts.
(7)
Capitalization rate and operating information based on the combined operating projection and purchase price of Comcast (Northpointe Center I) and Northpointe
Corporate Center II.
(8)
Included in Comcast (Northpointe Corporate Center I) purchase price.
(9)
Credit rating of parent company UnitedHealth Group, Inc.
Griffin Capital Essential Asset Property Management, LLC, an affiliate of the Registrant, will
manage the properties in the Investment Grade Portfolio and will be paid management fees in an amount of 3% of the gross monthly revenues collected from the properties in the Investment Grade Portfolio.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
As reported in Item 1.01 above, to partially finance the acquisition of the Investment Grade Portfolio, the Registrant, through the
Borrower SPEs, obtained $300 million in debt pursuant to the KeyBank Term Loan. The KeyBank Term Loan had an initial funding of $282 million, with an $18 million holdback available to fund future tenant improvements and leasing costs for the
Mortgaged Properties (as defined below).
The amount drawn under the KeyBank Term Loan will bear interest at the option of the Borrower
SPEs of either the Alternate Base Rate plus the Applicable Rate or the Adjusted LIBO Rate plus the Applicable Rate (each as defined in the KeyBank Term Loan). The Borrower SPEs elected to have the Adjusted LIBO Rate plus the Applicable Rate apply to
the initial draw, which equated to an initial interest rate of approximately 2.2%. The KeyBank Term Loan has a term of three years, maturing on November 5, 2016, subject to two, one-year extension options (subject to the fulfillment of certain
conditions), and requires monthly interest-only payments. The KeyBank Term Loan may be terminated or prepaid, in whole or in part, at any time without fees or penalty, provided that the Borrower SPEs will indemnify KeyBank for any breakage costs
associated with any LIBOR borrowings.
The Operating Partnership paid a commitment fee of 1.25% of the maximum loan amount in connection
with the KeyBank Term Loan. The Operating Partnership will also pay an annual administrative fee of $35,000 that is payable quarterly and, upon the exercise of any extension of the KeyBank Term Loan, a fee of 0.25% of the then-outstanding loan
amount.
The KeyBank Term Loan is secured by cross-collateralized, first mortgage liens on the properties comprising the Investment Grade
Portfolio (the "Mortgaged Properties"). The Registrant has provided a standard non-recourse carveout guaranty and environmental indemnification related to the KeyBank Term Loan.
Mortgaged Properties may be released in accordance with the following release prices:
(i) 100% of the allocated loan amount (established at closing for each of the properties included in the Investment Grade Portfolio) if (a) the Pool DSCR (as defined in the KeyBank Term Loan) is 1.60x or greater for the Mortgaged
Properties remaining as collateral and (b) at least four Mortgaged Properties remain after such release; (ii) 115% of the allocated loan amount if (a) the Pool DSCR is less than 1.60x for the Mortgaged Properties remaining as
collateral and (b) at least four Mortgaged Properties remain after such release; or (iii) if fewer than four Mortgaged Properties remain after such release, the greater of (a) 125% of the allocated loan amount or (b) if the
Mortgaged Property in question is being sold, 100% of net sales proceeds. The release of Mortgaged Properties is subject to additional conditions outlined in further detail in the KeyBank Term Loan, including a requirement that the Pool DSCR shall
not decline as a result of the release of a Mortgaged Property; provided, however, that the Borrower SPEs shall have the right to make an additional principal prepayment in order to satisfy this requirement.
The KeyBank Term Loan contains a number of customary representations, warranties, indemnities, and covenants, including, but not limited to,
the following:
•
The Borrower SPEs will calculate the Pool DSCR quarterly and are subject to the following commitments:
(i)
If the Pool DSCR is less than 1.25x, the Borrower SPEs must fund all excess cash flow after debt service on a monthly basis into a cash collateral reserve account with KeyBank. These funds may be released to the
Borrower SPEs upon achievement of a Pool DSCR of 1.25x or greater for two consecutive quarters.
(ii)
If the Pool DSCR falls below 1.20x, the Borrower SPEs will make a principal payment (or post other cash collateral) in an amount to bring the Pool DSCR up to no less than 1.30x. Any collateral will be released upon the
achievement of the required 1.30x Pool DSCR for two consecutive quarters.
•
Beginning in month 25 and each month thereafter, the Borrower SPEs will fund a leasing reserve account in equal monthly installments in an amount sufficient to cover budgeted tenant improvements and leasing commissions
for the year commencing 12 months forward, in keeping with KeyBank's budget.
•
KeyBank must approve all leases and material amendments to any leases of property between 50,000 and 200,000 square feet. Majority Lenders (as such term is defined in the KeyBank Term Loan) must approve all leases of
property greater than 200,000 square feet.
•
The Borrower SPEs may not incur debt or recourse obligations other than the KeyBank Term Loan. Likewise, a Borrower SPE may not dissolve, terminate, merge, or consolidate itself or transfer in any way its ownership
interest in the Investment Grade Portfolio.
Item 9.01 Financial Statements and Exhibits
(a) Financial Statements of Real Estate Acquired.
Since it is impracticable to provide the required financial statements for the acquired real estate described in Item 2.01 at the time of
this filing and no financials (audited or unaudited) are available at this time, the Registrant hereby confirms that it intends to file the required financial statements on or before January 22, 2014 by amendment to this Form 8-K.
(b) See paragraph (a) above.
(d) Exhibits.
10.1
Portfolio Purchase Agreement
10.2
Third Amendment to Portfolio Purchase Agreement
10.3
KeyBank Term Loan Credit Agreement
10.4
KeyBank Term Loan Form of Promissory Note
10.5
Guaranty of Griffin Capital Essential Asset REIT, Inc.
10.6
Unit Purchase Agreement
10.7
Investor Rights Agreement
10.8
Second Amended and Restated Limited Partnership Agreement of Griffin Capital Essential Asset Operating Partnership, L.P.
10.9
Amendment No. 1 to Second Amended and Restated Limited Partnership Agreement of Griffin Capital Essential Asset Operating Partnership, L.P.
10.10
Board Observer and Indemnification Agreement
Signature(s)
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Griffin Capital Essential Asset REIT, Inc.
Date: November 12, 2013
By:
/s/ Joseph E. Miller
Joseph E. Miller
Chief Financial Officer