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 $34.4 million and office lease extensions of approximately 288,000 square feet.
Disposition Activity
Lexington has disposed of the following six properties in the second quarter to date.
| Property | Location | Gross Proceeds ($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% | ||
| Total | $59.1 | 1,924,761 | 41% | |||||
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.
Investment Activity
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.
Leasing Activity
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.