X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

JACKSON, TN-Lexington Corporate Property Trust has landed national retailer Kirkland’s Inc. for a 771,000-sf build-to-suit distribution facility in Jackson, TN, where Kirkland’s keeps its headquarters.

Kirkland’s signed a letter of intent to lease the building long term from New York-based Lexington, a national investor in net-leased properties. The transaction is expected to close in the next four to six weeks, after which construction of the new facility will begin on 80 acres of land within Airport Industrial Park, near Interstate 40. The new facility is expected to be complete in the first quarter of fiscal 2004 and fully operational in the second quarter of fiscal 2004.

New York-based Lexington says it will build the new building and lease it to Kirkland’s for an initial term of 15 years beginning in May 2004. The letter of intent gives Kirkland’s the option to expand the facility by an additional 400,000 sf to support future store growth, as well as two successive five-year renewal options at the end of the initial 15-year lease term.

Kirkland’s says the new facility will replace the three buildings in Jackson that currently support the Company’s central distribution effort, all of which are leased facilities. Kirkland’s says it expects to pay early termination fees in connection with the termination of its existing warehouse leases, resulting in a pretax charge of $1.2 million in the third quarter.

The parties involved are not releasing the dollar value of the pending transaction until it is no longer pending, however; in announcing the news, Kirkland’s President/CEO Robert Alderson did say “the financial terms of our lease will allow us to secure this long-term facility at approximately the same annual lease cost as we pay today for three buildings.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.