The identity of the seller was not disclosed. OLP bought the property through a wholly owned LLC. Frederic H. Gould, president and CEO of OLP says the acquisition "complements our existing portfolio of net leased properties." In this case, the tenant is DSM Nutritional Products Inc., with the lease guaranteed by parent company Koninklijke DSM NV.
The asset was acquired as replacement property in connection with a 1031 tax-deferred exchange, according to Gould, with a portion of the purchase price paid from proceeds from a previous sale of unused air rights by an OLP affiliate relating to a property in Brooklyn, NY. In that earlier sale, which was completed in June, the OLP affiliate sold the development right involving an existing office building for $11 million, a deal which resulted in a gain of $9.8 million.
OLP is a Great Neck, NY-based REIT that specializes in buying real estate properties under long-term net leases. The company's leases generally provide for contractual rent increases with all operating expenses and most or all other property-related expenses paid by the tenant, according to Gould.
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