Lexington Realty Trust Obtains $197 Million in Credit Tenant Lease Financing
July 20 2016 - 7:00AM
Lexington Realty Trust (NYSE:LXP) (“Lexington”), a real estate
investment trust (REIT) focused on single-tenant real estate
investments, today announced that it has closed on a $197.2 million
non-recourse first mortgage loan secured by its build-to-suit
project in Lake Jackson, Texas. Lexington committed to fund up to
$166.2 million for the project in 2014 and has an investment
balance of $83.9 million as of June 30, 2016. The project,
expected to be substantially completed in the fourth quarter of
2016, is net-leased to The Dow Chemical Company for a 20-year term
upon completion. The loan bears interest at a fixed rate of
4.04% and provides for an approximately $11.3 million balloon
payment at maturity in October 2036.
Lexington will use the net proceeds for general
working capital purposes which could include build-to-suit fundings
and paying down on its revolving credit facility.
“This financing is a great example of how we can
selectively use secured financing to create immediate substantial
value for our shareholders while executing on our build-to-suit
investment strategy. Due to a favorable rate environment and strong
tenant credit, we were able to obtain $197 million of 20-year
financing at an attractive interest rate, and we will retire credit
facility borrowings and extend our weighted average debt maturity
as contemplated in our 2016 business plan,” commented T. Wilson
Eglin, Chief Executive Officer and President of Lexington Realty
Trust.
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 and
debt investments in single-tenant net-leased commercial properties
and land 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:
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
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