Lexington Realty Trust Acquires $29.7 Million Industrial Property With 20-Year Lease
January 20 2016 - 4:16PM
Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate
investment trust (REIT) focused on single-tenant real estate
investments, today announced it has closed on a previously
announced acquisition of an approximately 190,000 square foot
industrial facility located in Detroit, Michigan. Lexington
purchased the property for $29.7 million, with both initial cash
and estimated GAAP yields of 7.4%.
Built in 2015, the property is 100% net leased
to FCA US LLC (formerly known as Chrysler Group LLC) (“FCA”) for an
initial 20-year lease term. FCA, one of the largest
automakers in the world, holds a Standard and Poor’s credit rating
of BB- with a stable outlook. The property is located in the
Detroit area near FCA’s corporate headquarters and is the main
logistics center for receiving and shipping just-in-time parts
(only arrive as needed) to various plants in Michigan, Ohio and
Ontario. Additionally, the property has convenient access to
Interstate Highways 75/94/96, a major airport and port, an
international crossing, and several rail carriers.
“Our most recent industrial acquisition is an
excellent fit for our portfolio as it further supports our
investment strategy of acquiring high-quality properties with
long-term leases in prime strategic locations,” commented T. Wilson
Eglin, Chief Executive Officer and President of Lexington. “The
automotive sector, which represents more than 10% of our revenue,
continues to be a strong performer, and we are pleased to add a
major player from the industry like FCA to our roster of corporate
tenants.”
ABOUT LEXINGTON REALTY
TRUST
Lexington Realty Trust is a real estate
investment trust that owns a diversified portfolio of equity and
debt interests in single-tenant commercial properties and land.
Lexington seeks to expand its portfolio through acquisitions,
sale-leaseback transactions, build-to-suit arrangements and other
transactions. A majority of these properties and all land interests
are subject to net or similar leases, where the tenant bears all or
substantially all of the operating costs, including cost increases,
for real estate taxes, utilities, insurance and ordinary repairs.
Lexington also provides investment advisory and asset management
services to investors in the single-tenant area. Lexington's common
shares are traded on the New York Stock Exchange under the symbol
"LXP". Additional information about Lexington is available on-line
by contacting Lexington Realty Trust, Investor Relations, at
www.lxp.com.
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: hgentry@lxp.com
LXP Industrial (NYSE:LXP)
Historical Stock Chart
From Mar 2024 to Apr 2024
LXP Industrial (NYSE:LXP)
Historical Stock Chart
From Apr 2023 to Apr 2024