Marc K. Lewis, principal of Lexham Realty and Lexham Private Investors (the sponsor of the 274 Riverside Ave. purchase), says the equity for the transaction was raised from a group of "high net-worth" individuals through Lexham Private Investors.
Lewis says that the five-story 274 Riverside Ave. building is leased to nine tenants including Millwood Brown, Janus Capital and Euro Meridian. The balance of the property is leased to shipping brokers, financial and marketing consultants and architectural firms. A $10.5 million fixed rate mortgage loan was provided by UBS. Additional capital was also raised for future capital improvements, Lewis notes. The going in cap rate on total capital, including reserves for future property improvements, was 9.2%, he adds.
In less than 30 days, Lexham Realty has closed on two Connecticut property deals. On Dec. 18, Lexham and a group of investors comprising Lexham Street Retail LLC purchased a 64,000-sf, four-building retail portfolio in West Hartford from Federal Realty Trust for $15.7 million. The four buildings located at 967 and 970 Farmington Ave., 27-43 LaSalle Road and 1253 New Britain Ave. were nearly fully leased at the time of the sale. Tenants at the property include Blockbuster Video, Cosi Restaurants and Charles Schwab.
Chris Angelone and Bill Moylan of CB Richard Ellis' Northeast Retail Investment Team in Boston and John McCormick and Patrick Mulready of the Hartford Investment Properties Group of CB Richard Ellis represented Federal Realty Trust in the transaction.
Lexham Realty already has a presence in the Westport marketplace, having acquired three office buildings totaling nearly 150,000 sf of office space along Riverside Ave. in March 2003 from TIAA for approximately $37 million. The smaller 274 Riverside Ave. property complements its other Westport office holdings and allows the firm to offer smaller space tenancies, Lewis says.
Lewis says that Lexham Realty projects its 2004 acquisitions will be in excess of $100 million.
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