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."

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