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NEW YORK CITY-Lexington Realty Trust and Chicago-based Inland Real Estate Trust have closed, via their co-investment program, on an acquisition of an 11 primarily single-tenant net leased assets for $270.2 million. The JV acquired the assets from Lexington and its subsidiaries, including the assumption of non-recourse first mortgage financing secured by some of the properties. The 11 buildings in the aggregate represent two million net rentable sf, and are located in six states.

A piece of a larger restructuring plan for Lexington, a REIT focused on single-tenant real estate investments, the program has been steadily absorbing Lexington’s assets. Most recently, the two partners revealed that the co-investment program is under contract to acquire a property in Garland, TX and a property in the Woodlands, TX from Lexington and its subsidiaries. The sale of these two additional properties is expected to close in Q2 2008.

Last December, the co-investment program closed, for $408.5 million, on 30 primarily single-tenant net leased assets from Lexington and its subsidiaries. This particular sale encompassed 30 properties equaling more than 3.5 million net rentable sf in 23 states.

Lexington created the co-investment program in August. At the time, in a statement, the company said the program “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.”

T. Wilson Eglin, president and CEO of Lexington has 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.”

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