New Lexington JV Quickly Investing Equity

SAL LAKE CITY-A new joint venture between New York-based Lexington Corporate Properties Trust and locally based Utah State Retirement Fund is rapidly leveraging its $50 million in equity into $140 million worth of net-lease properties. Over the past two weeks, Triple Net Investment Company LLC has acquired four properties in four different states for a combined purchase price of $80.5 million.The most recent purchases include a 677,400-sf, five-year-old distribution facility on 55.6 acres in Antioch, TN, that is net-leased to Dana Corporation through October 2021. The $25.4-million purchase price includes the assumption of $15 million in non-resource first mortgage debt that bears interest at a fixed rate of 7.94% and matures in October 2021. The seller was GE Real Estate.At the end of June, the JV acquired a 125,000-sf, five-year-old office building in West Chester, PA, that is net leased to ING USA Annuity and Life Insurance Company through May 2010. The $19.2-million purchase price included the assumption of $11.4 million of non-recourse first mortgage debt that bears interest at a fixed rate of 6.75% and matures in July 2019. Additionally, Lexington contributed a 70% interest in two of its existing properties to the JV for $35.9 million, including the assumption of $22 million in debt. Lexington provided little more detail about the debt or the properties other than their location, in in Baton Rouge, LA and Centennial, CO, and a search of the company’s recent SEC filings did not turn up more detail. Utah State Retirement Fund invested $15 million in the JV and Lexington invested $35 million. Assuming mortgage financing of 65% of acquisition cost, the joint venture will acquire up to $140 million of property. Utah State Retirement Fund is advised by AEW Capital Management LP. Jones Lang LaSalle advised GE Real Estate in the sale of the Tennessee property.