Lexington Buying Harcourt Facility for $42M

SAN ANTONIO, TX-Lexington Corporate Properties Trust was scheduled to close on Friday its acquisition of an 80-acre campus here that includes 560,000 sf of net lease buildings and excess land for an additional one million sf of development. The seller is TCDFW Harcourt LP, a private family trust out of Boca Raton, FL. The purchase price is $41.8 million. The existing facilities include two buildings with a combined 146,180 sf of office and 413,078-sf of warehouse. All built space is net leased through 2016 to Harcourt Inc., parent of Harcourt Brace, which uses the space for its assessment division and affiliated entities that design and administer a battery of standard psychological and educational testing products. The base rent for the 15-year lease was $3 million in 2001. The rent increases 2% per annum.Mike Garrido, the president of Trident Realty Advisors in Los Angeles, brokered both sides of the transaction with Ted Gibbons of IRA Inc. Garrido tells GlobeSt.com that Lexington’s cap rate on the investment is 8% based on the in-place lease agreement. Lexington’s plans for future development of the site were not immediately available Monday afternoon.Last week, Lexington closed on the $13.2-million acquisition of a 245,000-sf warehouse in High Point, NC that was built to suit office furniture maker Steelcase Inc., which has net leased the facility through September 2017. As part of the transaction, Lexington assumed $8.9 million in non-recourse fixed-rate financing bearing a coupon of 5.75% and maturing in September 2009. The property is utilized by Steelcase subsidiary Brayton International. The seller, Lexin Capital LLC of New York, was represented in the transaction by Sonnenblick-Goldman Co.