NEW YORK, June 06, 2017 (GLOBE NEWSWIRE) — Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust (REIT) focused on single-tenant real estate investments, today announced recent transaction and leasing activity which included $59.1 million of asset sales, the acquisition of an industrial facility for $34.4 million and office lease extensions of approximately 288,000 square feet.
Lexington has disposed of the following six properties in the second quarter to date.
|Property||Location||Gross Proceeds ($MM)||Square Footage||Sector||Tenant||% Leased|
|7111 Crabb Road||Temperance, MI||$19.0||756,856||Multi-Tenant Industrial||Hollingsworth Logistics Group||52%|
|3600 Army Post Road||Des Moines, IA||$15.6||405,000||Industrial||MARKETLINK, Inc.||6%|
|2424 Alpine Road||Eau Claire, WI||$13.6||159,000||Industrial||Silver Springs Foods||100%|
|5350 Leavitt Road||Lorain, OH||$6.3||193,193||Retail||Kmart Corporation||100%|
|26555 Northwestern Hwy||Southfield, MI||$3.5||359,645||Multi-Tenant Office||Vacant||0%|
|3165 McKelvey Road||Bridgeton, MO||$1.1||51,067||Multi-Tenant Office||BJC Health System||50%|
Consistent with Lexington’s investment strategy to further simplify its portfolio, the assets sold included short-term leased industrial, retail, multi-tenanted and vacant properties. Average lease duration for the sold properties was approximately five years and annual net operating income (NOI) totaled approximately $1.6 million at the time of sale. Year to date, Lexington has sold approximately $158 million of its stated $250-$300 million 2017 property disposition plan.
During the second quarter, Lexington acquired an 851,000 square foot industrial facility for $34.4 million at estimated GAAP and cash capitalization rates of 7.2% and 7.1%, respectively. Located in Cleveland, Tennessee directly off of I-75, the property is 100% net leased to General Electric Company for an approximate 7-year lease term. The purchase of well-located industrial assets remains a targeted focus for Lexington’s investment strategy.
Also during the second quarter, Lexington completed the 201,000 square foot office property located in Charlotte, North Carolina, which is 100% net leased to AvidXchange, Inc. through April 2032. The property was completed for a capitalized cost of $61.3 million at estimated GAAP and cash capitalization rates of 9.7% and 8.4%, respectively.
Lexington signed the following office lease extensions in the second quarter to date.
|Property||Location||Tenant||Square Footage||% Leased||Lease Extension (Approx.)|
|9201 East Dry Creek Road||Centennial, CO||Arrow Electronics, Inc.||128,500||100%||15.5 Years|
|13651 McLearen Road||Herndon, VA||United States of America||159,644||100%||4.0 Years|
ABOUT LEXINGTON REALTY TRUST
Lexington Realty Trust (NYSE:LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its portfolio through build-to-suit transactions, sale-leaseback transactions and acquisitions. For more information or to follow Lexington on social media, visit www.lxp.com.
CONTACT: Contact: Investor or Media Inquiries for Lexington Realty Trust: Heather Gentry, Senior Vice President of Investor Relations Lexington Realty Trust Phone: (212) 692-7200 E-mail: [email protected]