NEW YORK, Jan. 20, 2016 (GLOBE NEWSWIRE) -- 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.