Through the firm, LXP expects to invest directly and indirectlyin general use properties with private or middle market typetenants, special purpose properties. These investments aregenerally expected to generate higher yields than those availableon Lexington's core investments.

The REIT is contributing its indirect ownership interest in fourreal estate assets and financing deposits. The properties were notidentified by LXP or in an SEC filing on the new venture. Inexchange, LSAC will issue to Lexington shares of its common stockhaving an aggregate value of approximately $33.2 million based onthe offering price in the private placement. After both, the firmwill have a nearly $95 million capitalization.

Lexington's chairman E. Robert Roskind, says LSAC will "broadenthe universe of investments that Lexington seeks to acquire." Heviews LSAC as a continuation of LXP's joint venture investmentstrategy. In the SEC filing, LSAC will be treated as a "taxableREIT subsidiary."

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.