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WATERLOO, IA-New York City-based Lexington Realty Trust has sold a 276,480-sf distribution facility here for more than $10 million. The building is 100% occupied by Ryder Integrated Logistics Inc., which has five years left on a 10-year lease. Rubenstein Properties, also based in New York City, is the new owner.

James Clark III, principal with Chicago-based EnTrust Realty Advisors, handled the transaction on behalf of Lexington. “They had held the property for about 10 years,” Clark tells GlobeSt.com. “They had five years of lease left, and they felt if they were going to monetize, given the compression of cap rates over the last decade, now was the time to do it.” He wouldn’t give the exact price of the sale, but says it was in the “low-teens, with a cap rate in the mid-8 range.”

The single-story building is on 26 acres at 2280 Northeast Dr., within the Waterloo North East Industrial Park, which is served by the Chicago and Northwestern railroad. The property was a build-to-suit for Ryder in 1996. Ryder, along with many other companies, supports the main employer in the region, Deere & Co., the maker of the John Deere tractor. Clark says Deere outsources its parts shipping to Ryder, and the building is used to warehouse and distribute parts from more than 400 suppliers globally for Deere’s primary tractor assembly plant here.

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