VALLEY FORGE, PA-New York-based Lexington Corporate Properties Trust has bought an 109,000-sf office building here for $19.5 million from Berwind Property Group of Philadelphia. The property, located at 2750 Monroe Blvd., is net-leased to Quest Diagnostics through April 2011 and is Quest’s national billing headquarters.
The two-story class-A office building was built in 1985 on a 10.5 acre site and renovated in 2001.
Aegis Realty Consultants represented Berwind Property Group of Philadelphia.
The average net rent payable during the lease term is about $2.16 million, or 11.1% of the purchase price. In connection with the acquisition, Lexington assumednon-recourse first mortgage financing with a balance of about $13.4 million. The loan has a fixed interest rate of 7.12%, matures in February 2011 and requires annual payments of $1.17 million.
“The recent decline in interest rates has enhanced the projected rate of return on other properties we expect to acquire over the balance of the year,” says T. Wilson Eglin, Lexington’s president and chief operating officer. “We are particularly interested in expanding our investment activity in properties leased to high quality healthcare companies such as Quest Diagnostics.”
So far this year, Lexington has acquired $85.3 million of properties–on terms, Eglin says, that have exceeded expectations.