Lexington has obtained $14.6 million in first mortgage financings on two Tampa assets. The separate loans bear interest at an average fixed rate of 6.91%, will mature in August 2010 and require $1.16 million of total annual payments, or 7.9% of the borrowed amounts.
The company also closed on $16.5 million in three first mortgage financings secured by Mechanicsburg properties, with loans bearing interest at a fixed rate of 7.78%. They will mature in December 2011 and require $1.50 million of total annual payments, or 9.1% of the amounts borrowed. Lexington is using the proceeds to pay down amounts outstanding under its unsecured credit line.
"These financings position us well as we head into 2002," says Patrick Carroll, CFO. "We have just $10 million outstanding under our $60 million unsecured credit facility and none of our indebtedness matures in 2002 or 2003."
Lexington representatives were unavailable at press time, however, according to the company's Web site, its two Tampa holdings include an office building occupied by Time Customer Service (Time, Inc.) on a 23-year net lease that expires in July 2010. The 132,981-sf building's 14-acre site is located at 10419 North 30th St. It was acquired by Lexington for $11.6 million in July 1988. The REIT also owns an office/warehouse facility that is net-leased to Time Customer Service until 2010. The asset is located at 3102 Queen Palm Dr. Lexington acquired the property for $9 million in November 1987. It has a net rentable area of 229,605 sf and is situated on 15 acres.
According to the Web site, Lexington's Mechanicsburg properties include a warehouse/distribution facility that is net-leased to Excel Logistics, Inc./NFC plc until 2012. The 507,000-sf asset is located at 6345 Brackbill Blvd. and sits on a 29-acre site. It was acquired by Lexington in October 1990 for $15.4 million. A second Excel Logistics warehouse at 245 Salem Church Rd. was acquired by Lexington in Mar 1997 for $9 Mil. The 252,000-sf facility is situated on a 12.52-acre site. The 15-year net lease on the property expires in November 2006.
Lexington recently expanded its joint venture with the New York State Common Retirement Fund, upping its buying power by an aggregate $200 million. Carroll adds, "we have a high degree of financial flexibility to finance our growth plans next year."
Lexington Corporate Properties Trust is a self-managed trust that owns and manages 98 US properties net-leased to major corporations in 30 states. Total holdings are approximately 15.7 million sf of space.
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