X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the net lease market.)

NEW YORK CITY-Lexington Realty Trust revealed that its co-investment program with Inland American Real Estate Trust Inc. closed on the acquisition of 30 primarily single-tenant net leased assets from Lexington and its subsidiaries for an aggregate purchase price of $408.5 million, including the assumption of non-recourse first mortgage financing secured by certain of the assets. The 30 properties contain an aggregate of more than 3.5 million net rentable sf and are located in 23 states.

The co-investment program is under contract to acquire up to an additional 23 properties from Lexington, a locally based REIT focused on single-tenant real estate investments, and its subsidiaries. Closing on a majority of the additional properties is expected to occur during the first quarter of 2008. When the JV was first announced, a spokesperson told GlobeSt.com that “in early June, the Lexington Realty Trust board put together a strategic restructuring plan and this was one of the steps.”

Lexington created the co-investment program in August, as GlobeSt.com reported, at which time the company released a statement saying that the program was “under contract to acquire 53 primarily single-tenant net leased assets from Lexington and its subsidiaries for an aggregate purchase price of $940 million–including the assumption of non- recourse first mortgage financing secured by certain of the assets.” The statement noted that the properties contain an aggregate of more than eight million net rentable sf, and are located in 28 states. T. Wilson Eglin, president and CEO of the company previously noted that “we believe that the capital committed to this co-investment program will allow us to pursue additional growth opportunities that will benefit our shareholders in the near and far term while generating attractive returns. In addition, the transaction is expected to generate significant capital to redeploy into other investment opportunities.”

At the time the partnership was announced, George Pandaleon, president of Inland Institutional told GlobeSt.com that the portfolio was somewhat different than what the REIT was used to buying. “This is a very well-diversified portfolio. The properties are more specialized than downtown office buildings, and don’t trade at low cap rates, i.e. high prices, but offer higher returns and come with a little more risk. The portfolio includes all property types, in many geographic areas, with very little rollover,” he said.

Information regarding the 30 primarily single-tenant net lease assets won’t be available until Lexington’s Current Report on Form 8-K is filed with the SEC, which the company says will be before Dec. 28, 2007. The sale of each of the additional 23 assets by Lexington and its subsidiaries and the purchase by the co-investment program is subject to satisfaction of conditions precedent to closing, including obtaining lender consent, obtaining certain consents and waivers, the continuing financial solvency of the tenants and certain other customary conditions. Lexington was unable to provide any assurance that the sales by it and its subsidiaries and the acquisition by the co-investment program will be completed as of now.

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. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

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.