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Farmers Insurance office complex/5665 North Kraft Lake Drive SE, 6300 Old 60th St. SE and 5600 Beechtree Lane SE

Address Farmers Insurance office complex/5665 North Kraft Lake Drive SE, 6300 Old 60th St. SE and 5600 Beechtree Lane SE
City/State: Grand Rapids, Michigan - MI
Size: 713,935 SqFt
Property type: Office
Status: SOLD
Transaction Date: 10/01/2019
Buyer: LCN Capital Partners
Seller: the Farmers Insurance Group of Cos.
Price: $147,250,000
Price per unit /sqft: $206


Note:

Farmers is leasing it back under a 15-year, triple-net agreement. The insurance company has options to extend its lease for up to four additional five-year periods.

To fund its purchase, the company has lined up $96.45 million of senior financing from Credit Suisse, which is including a piece of the loan in an upcoming CMBS conduit transaction.

The loan has a 10-year term and requires only interest payments for the first five years. It then amortizes on a 30-year schedule. It pays a coupon of 3.55 percent.

Farmers Insurance, meanwhile, pays $12.75/sf in annual rent that's subject to 2 percent annual increases, which results in $9.5 million in annualized net cash flow.



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