NEW YORK CITY-Increasing its acquisition capacity to approximately $345 million, assuming 65% mortgage financing, Lexington Corporate Properties Trust expanded its joint venture with an institutional investor advised by AEW Capital Management LP of which Lexington holds a 30% equity interest. Lexington and its partner will contribute an additional $21.4 million and $50 million, respectively, bringing the total equity committed to the JV to $121.4 million.

Lexington made some Boston area purchases. For additional information, go to Lexington Takes Two Properties for $48M.

The JV, which was formed earlier this year, invests in single-tenant net-leased real estate throughout the US. To date, it has made investments in 11 properties with an aggregate acquisition cost of $110.5 million. “We believe that our joint venture strategy helps us create shareholder value, enhance our portfolio diversification, increase our acquisition volume and generate higher returns on equity,” says Lexington chair E. Robert Roskind.

The partnership also made a few acquisitions. The JV acquired a two-story office building in Canonsburg, PA for approximately $14.9 million. The 107,872-sf building is net-leased to ANSYS Inc. through Dec. 31, 2014. The JV also acquired six retail properties totaling 714,522-sf for $24.1 million. Each is net-leased to Kmart Corp. through Dec. 31, 2018, under separate leases.

Bear, Stearns & Co. Inc., the underwriter of Lexington’s recent public offering priced at $135 million, has exercised, in full, its over-allotment option and is expected to purchase an additional 400,000 Series C Preferred Shares. The REIT will use net proceeds will be used to fund property acquisitions and for other general business purposes.

The JV started earlier this year with the goal of acquiring up to $140 million in single-tenant properties. Properties that have been acquired to date include a distribution facility in Antioch, TN for $25.4 million, an air lot containing the top 13 floors of the FCB Center in Downtown Chicago for approximately $49.7 million and an office facility in Herndon, VA. The purchase price was $20.8 million. In October, Lexington expanded its joint venture program with Clarion Lion Properties Fund LLC. The commitments bring the total equity committed to the joint venture to $185.7 million and increase its acquisition capacity by approximately $210 million, assuming 60% mortgage financing.

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