The Lexington Master Limited Partnership and the undisclosed co-investor will buy the mostly single-tenant net leased properties located in 28 states from the REIT and its subsidiaries. "The co-investment program is under contract to acquire 53 primarily single-tenant net leased assets," the spokesperson notes. "Some of the properties are for specialty use such as data centers or manufacturing facilities."

The spokesperson adds that, "in early June, the Lexington Realty Trust board put together a strategic restructuring plan. This was one of the steps."

The properties contain an aggregate of more than eight million net rentable sf. In addition to the 53 assets under contract, the Lexington Master Limited Partnership and its co-investor intend to invest $22.5 million and $127.5 million, respectively, in the co-investment program to acquire additional specialty single-tenant net leased assets.

Assuming mortgage financing of 70% of acquisition cost, the joint venture will acquire up to $1.4 billion of property. "We look forward to developing this co-investment program and are excited by the new relationship," says Michael Ashner, executive chairman of Lexington Realty Trust.

The sale of each of the 53 assets by Lexington and its subsidiaries and the purchase by the co-investment program is subject to satisfaction of conditions precedent to closing, according to a release. This includes obtaining financing on certain terms, obtaining certain consents and waivers, the continuing financial solvency of the tenants and certain other customary conditions. Accordingly, Lexington cannot provide any assurance that the sales by it and its subsidiaries and the acquisition by the co-investment program will be completed.

"We believe that the capital committed to this co-investment program will allow us to pursue additional growth opportunities that will benefit our shareholders in the near and far term while generating attractive returns," says T. Wilson Eglin, president and CEO of Lexington Realty Trust. "In addition, the transaction is expected to generate significant capital to redeploy into other investment opportunities."

Instant Insights /

Lexington JV Selling 53 Properties for $940M

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