The 100,000-sf, two-building complex serves as corporate headquarters for Apria Healthcare Group Inc. It is leased to Apria through January 31, 2012 at a current annual net rent of $1.56 million, which increases by 3% per annum. The average net rent payable during the lease term is $1.8 million, which works out to be 10.62% of the purchase price.
The acquisition of the property marks Lexington's foray into the Lake Forest region, which company officials view as a "market that has exciting growth prospects," according to Lexington CEO, T. Wilson Eglin.
Lexington has partially financed the acquisition through a non-recourse first mortgage loan in the amount of $11 million secured by the properties. The loan, which matures on January 31, 2012, has a fixed interest rate of 7.26% and requires annual payments of $901,368. Other acquisition funds were procured through the sale of two industrial properties in Modesto, CA and Bessemer, AL. The $8.4 million in proceeds were used towards the Lake Forest acquisition and also to fully repay amounts outstanding under Lexington's unsecured credit facility.
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