Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Locally based REIT Lexington Corporate Properties Trust has started a new specialty investment company called Lexington Strategic Asset Corp. So far, LSAC has raised net proceeds of approximately $61.6 million through the sale in a private placement of 6.7 million shares of common stock.

Through the firm, LXP expects to invest directly and indirectly in general use properties with private or middle market type tenants, special purpose properties. These investments are generally expected to generate higher yields than those available on Lexington’s core investments.

The REIT is contributing its indirect ownership interest in four real estate assets and financing deposits. The properties were not identified by LXP or in an SEC filing on the new venture. In exchange, LSAC will issue to Lexington shares of its common stock having an aggregate value of approximately $33.2 million based on the offering price in the private placement. After both, the firm will have a nearly $95 million capitalization.

Lexington’s chairman E. Robert Roskind, says LSAC will “broaden the universe of investments that Lexington seeks to acquire.” He views LSAC as a continuation of LXP’s joint venture investment strategy. In the SEC filing, LSAC will be treated as a “taxable REIT subsidiary.”

During the second quarter, LXP closed on 33 investments totaling $945.6 million, including $393.1 million in joint ventures. The company also obtained $615.1 million in new non-recourse first mortgage financings and replaced an existing $100-million credit facility with a new $200-million unsecured revolving credit facility.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.