Second mortgage financing of $12.5 million with a floating interest rate of 8.83% was obtained on the Ohio facility, which requires only quarterly interest payments and matures on Sept. 30, 2007. Net-leased to Kmart, the facility is subject to a 7% first mortgage of $33.6 million that amortizes over the remaining lease term.
The loan on the Glendale property carries a fixed interest rate of 7.4%, requires annual payments of $1.26 million (8.3%) and matures in April 2011. Honeywell has leased the property until July 15, 2006.
To replace a $60-million unsecured credit facility that matures in July, Lexington has closed on a $35-million unsecured credit revolving credit facility with a three-year term that bears interest at 150 to 250 basis points over LIBOR. Those terms depend on the number of properties the REIT owns free of mortgage debt.
During the second quarter, the REIT also plans to raise $32.5 million on mortgage financing on three of its properties, which will fund joint venture acquisitions, general corporate purposes and repay funds outstanding under its revolving credit facility.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.