Lexington Realty Trust Sells Three Properties for $58.2 Million
Completes 1.7 Million Square Feet of Leasing
NEW YORK, April 04, 2016 (GLOBE NEWSWIRE) -- Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust (REIT) focused on single-tenant real estate investments, today announced that during the first quarter of 2016, it sold one specialty/retail asset and two suburban office assets for gross proceeds of approximately $58.2 million at a weighted-average capitalization rate of 6.5%. Approximately $8.3 million of mortgage debt was retired in connection with these sales. These properties were included in Lexington’s 2016 disposition plan to sell $600-$700 million of assets.
| Property | Location | Gross Proceeds ($MM) |
Square Footage |
Sector | Primary Tenant | ||
| 25500 State Hwy. 249 | Tomball, TX | $ | 17.6 | 77,076 | Specialty/ Retail |
Parkway Chevrolet, Inc. | |
| 4200/4400 Northcorp Pkway | Palm Beach Gardens, FL | $ | 30.1 | 113,565 | Multi-Tenant/ Office |
Multi-Tenant/The Weiss Group, LLC |
|
| 2550 Interstate Dr. | Harrisburg, PA | $ | 10.6 | 87,718 | Office | AT&T Services, Inc. | |
Also during the first quarter of 2016, Lexington completed approximately 1.7 million square feet of new leases and lease extensions, with early lease extensions comprising the majority of this volume. Major lease extensions included:
| Tenant | Location | Square Footage |
Prior Term | New Lease Expiration |
Sector |
| Kraft Heinz Foods Company | Winchester, VA | 344,700 | 05/2016 | 05/2021 | Industrial |
| Siemens Corporation | Milford, OH | 221,215 | 09/2016 | 04/2026 | Office |
| Sears, Roebuck and Co./ Sears Logistics Services |
Memphis, TN | 780,000 | 02/2017 | 02/2027 | Industrial |
“All three sales highlight successful execution of our portfolio repositioning strategy, further reducing our short-term office, multi-tenant and specialty/retail exposure. We were also able to achieve favorable sales results by fully stabilizing the suburban office assets. Our disposition plan is fully underway and we will continue to work diligently on the sales under this plan as we look to further improve the quality of our earnings, meaningfully upgrade our portfolio and reduce leverage,” said T. Wilson Eglin, Chief Executive Officer and President of Lexington.
Mr. Eglin further commented, “We are extremely pleased with our leasing volume of approximately 1.7 million square feet for the quarter, and expect portfolio occupancy to remain strong throughout 2016.”
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. Additional information about Lexington can be found by visiting 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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