The seller, Norfolk, VA-based Harbor Group International, realized a $2.25-million or 11.59% gain in the three years since it purchased the building from Chicago-based Bank One in 1999 for $19.4 million.
In a prepared statement, Jordan E. Slone, chairman/CEO of HGI, says Harbor's exit "of this investment at this time optimized our returns."
Slone says IPC US REIT "was looking to diversify its portfolio and enhance its presence in the Midwestern U.S. office market. These factors made the timing of this deal advantageous for both companies."
The class A property was completed in 1973 and consists of a 14-story tower and a two-story annex that sits on top of its attached parking garage. It occupies an acre and fills an entire block in Lexington's central business district.
The building is 91% occupied, with Bank One as anchor taking about 72% of the available space. Other name tenants are PricewaterhouseCoopers, and the law firms of McBrayer, Leslie, McGinnis & Kirkland PLLC, and Cox, Bowling & Johnson. The New Lexington Dining Club is also located in the building.
IPC is the only REIT in Canada that invests exclusively in U.S. commercial real estate, according to Harbor's statement. It owns and manages 4.7 million sf in 26 U.S. properties, which include six retail and 20 office facilities. HGI owns $800 million worth of properties in the U.S. and abroad.
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