"These three transactions bring our total acquisition volume for the year to $65.8 million and are the culmination of many months of work with Michelin and TNT," says Lexington vice chairman and co-chief executive officer Richard J. Rouse. "We are beginning to see more opportunities that meet our underwriting criteria for tenant credit, lease term and total return characteristics and we expect to be an active investor over the balance of the year."
Two of the properties--located in Laurens, SC and Temperance, MI--were purchased in joint venture with the New York State Common Retirement fund. Michelin sold the distribution centers for roughly $46-million.
The Laurens facility, located between Columbia and Greenville/Spartanburg, totals approximately 1,160,000 square feet on a parcel of approximately 118 acres that can accommodate a 700,000 square foot expansion. The Temperance property, located just north of Toledo, OH totals approximately 752,000 square feet on a 51.4-acre parcel that can accommodate a 300,000 square foot expansion.
Both assets will be net-leased to TNT Logistics North America, which is providing Michelin with logistical services throughout the United States and Canada.
The joint venture, formed for the purpose of investing in single-tenant net-leased office and industrial properties throughout the US has now invested a total of approximately $331 million.
In a separate transaction, Lexington Realty Advisers Inc., an affiliate of the REIT, has acquired a 123,000-sf distribution center located on 8.6 acres in Alberta, Canada. Michelin sold the nine-year-old asset for roughly $3 million. TNT Canada Inc. will occupy the property under a net-lease agreement.
Lexington Corporate Properties Trust owns and manages office, industrial and retail properties net-leased to major corporations throughout the US. Lexington Realty Advisors provides investment advisory and asset management services to investors in the net lease area.
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