San Francisco-based Wells Fargo Home Mortgage will net-lease the property on 15.9 acres for 11 years at an estimated average annual rent of $11.30 per sf. The total rent through January 2013 will amount to $2.1 million, or 11.67% of the $17.9 million purchase price from Charlotte-based Crescent Resources LLC.
Lexington helped the tenant obtain an $11.7 million, non-recourse first mortgage for the acquisition. Lexington didn't disclose the lender's name in a prepared statement.
The loan will have a fixed interest rate of 6%; mature 10 years from the closing; and require annual payments of $839,000 or 7.19% of the amount borrowed. The closing is expected by year end.
Tied in with the South Carolina acquisition was a second purchase by Lexington in Groveport, OH. The REIT paid $11.8 million or $33.23 per sf for a 355,000-sf warehouse/distribution property on 22.7 acres outside Columbus, OH. Lexington didn't disclosed the buyer's name.
"These two acquisitions will bring our total volume for the year to $123.1 million," Lexington vice chairman and co-CEO Richard J. Rouse says in the statement. "Although acquisition volume has been slower than expected, we have exceeded our objectives in terms of capitalization rates, lease duration and return on equity."
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