The larger of the two office assets is a 269,715-sf complex situated on nearly 18 acres in Westmont, IL that Lexington purchased for $24.8 million. The Chicago-suburban property is net-leased to North American Van Lines Inc. for 12 more years and serves as the headquarters for North American's parent company, SIRVA Inc.
Lexington is expected to close on $16.38 million in first-mortgage financing in connection with the purchase by Jan. 31. The 15-year fixed loan has an interest rate of 6.21%.
The REIT also closed on the $17.9-million acquisition of a169,083-sf office property in Fort Mill, SC. Located near Charlotte, the asset is net-leased to Wells Fargo Home Mortgage through January 2013. Lexington has secured an $11.7-million first mortgage on the property at an interest rate of 6%.
"These two acquisitions bring our total investment activity for the year to $162.3 million," says Lexington vice chairman Richard J. Rouse. "Annual net rental revenues from these investments will total $18.2 million, or 11.21% of our investment cost. In a year where the acquisition environment was very competitive, we are very pleased to have invested capital at such an attractive spread over our borrowing costs. Today we have $55.2 million of acquisitions under contract and/or letter of intent and we are well positioned to meet our target of $200 million of acquisitions in 2003."
Lexington also announced that it has entered into a 10-year lease agreement beginning in April with Offenbacher Aquatics Inc. at its Columbia Maryland retail property. The average rent over the life of the lease is $11.28 per sf.
In addition, Lexington has retired $10 million of mortgage debt. The early repayment will result in a one-time charge of roughly $370,000 in Q4 for the company.
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