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ATLANTA-Lexington Corporate Properties Trust, a New York-based REIT trading on the New York Stock Exchange since 1993, has added a newly constructed 60,000-sf, 100%-leased single-story office building in Knoxville, TN to its portfolio of 99 properties totaling 18.1 million sf.

Lexington paid Norcross, GA-based Adevco Corp. $8.1 million or $135 per sf for the eight-acre property which is net-leased to AdvancePCS of Irving, TX through May 2013. The average net rent payable during the lease term is $820,000 or 10.2% of the purchase price. The health services company uses the building as its Southeast call center.

The REIT obtained non-recourse, first-mortgage financing of $5.3 million from Bear Stearns of New York. The loan has a fixed interest rate of 5.95%, matures in September 2013 and requires annual payments of interest only through May 2003. After that date, annual payments of $381,000 or 7.16% of the amount borrowed will be due, according to a prepared statement from Lexington.

“This acquisition of a high-quality office property, fully leased to a credit tenant, brings our total volume for the year to $93.4 million,” Natasha Roberts, Lexington’s vice president/acquisitions, says in the statement. “Once again, we have taken advantage of a very favorable interest rate environment and obtained fixed-rate, non-recourse financing that enhances our current and total returns.”

For the second quarter ended June 30, the REIT reported rental revenue of $24.5 million versus $20.4 million in the same 2001 period. Net income of $7.87 million or 29 cents per diluted share compared with $5 million and 25 cents per diluted share in second quarter 2001.

Cash and cash equivalents totaled $14.9 million versus $10.9 million a year ago. Lexington’s common opened today on volume of 3,700 at $16.46 per share, down 19 cents from $16.65 on Sept. 6. The REIT’s 52-week high-low is $16.86 and $13 per share.

At its two other Tennessee-owned properties, Lexington has rented its 141,359-sf, 15-year-old building on 10.92 acres in Memphis to Mimeo.com.Inc. on a lease that expires Oct. 31, 2009. The REIT previously acquired the building for $12.2 million.

In Gordonsville, TN, Dana Corp. is leasing Lexington’s 19-year-old, 148,000-sf structure on 20.9 acres through Aug. 31, 2007. Lexington previously paid $3.37 million for the building.

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