Lexington Realty Trust Acquires Three-Property E-Commerce Industrial Portfolio for $180 Million
NEW YORK, Sept. 11, 2019 (GLOBE NEWSWIRE) -- Lexington Realty Trust (NYSE:LXP) (“Lexington”), a real estate investment trust (REIT) focused on single-tenant industrial real estate investments, today announced that it has acquired a 2.4 million square foot e-commerce industrial portfolio from Atlanta-based developer and manager IDI Logistics for approximately $180 million.
The portfolio consists of three recently constructed, Class A warehouse/distribution facilities located within Park North at Monroe, an established logistics park developed by IDI Logistics along Interstate 75 in a strong industrial submarket of Cincinnati, Ohio. Each property is 100% net-leased to nationally recognized tenants/guarantors, consisting of Amazon, Hayneedle/Wal-Mart, and Blue Buffalo (a division of General Mills). The portfolio has a weighted-average lease term of approximately 9.3 years and average annualized rental escalations of approximately 2%.
This portfolio transaction is consistent with Lexington’s investment strategy of purchasing well-located, high-quality industrial assets as it transitions to a 100% industrial-focused net-lease REIT. To date, 2019 investment activity totals approximately $440 million at estimated GAAP and cash capitalization rates of approximately 5.6% and 5.4%, respectively. At acquisition, these investments had a weighted-average remaining lease term of 6.0 years.
Additionally, Lexington has approximately $170 million of warehouse/distribution properties under an accepted offer or contract. As the acquisition of these properties is subject to negotiation of various agreements, completion of due diligence and/or customary closing conditions, Lexington can give no assurance that we will acquire any or all of these properties.
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 industrial portfolio through build-to-suit transactions, sale-leaseback transactions and acquisitions.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties and other factors not under Lexington’s control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those factors and risks detailed in Lexington’s periodic filings with the Securities and Exchange Commission. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events.
The estimated GAAP and cash capitalization rates disclosed above reflect the acquisition disclosed in this press release using the contract prices before costs and other adjustments.
Contact:Investor or Media Inquiries for Lexington Realty Trust:Beth Boulerice, Chief Financial OfficerLexington Realty TrustPhone: (212) 692-7200 E-mail: firstname.lastname@example.org