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Lexington JV Acquires 160,000-SF Office Development

RANCHO CORDOVA, CA-The New York-based REIT pays $31.8 million in cash and assumed debt for two two-story office buildings here that are net leased through mid-year 2012.

By Brian Miller | Updated on October 23, 2004

RANCHO CORDOVA, CA-Lexington Corporate Properties Trust has acquired through one of its development joint ventures a net-leased 158,582-sf office development here for about $31.8 million. The purchase price included $17.4 million of assumed debt that bears interest at about 7.3% and matures in 2014.The 11-acre development consists of two, two-story buildings constructed in 2002. The property is net- leased to Progressive Casualty Insurance Company through July 31, 2012.Lexington officials could not be reached for comment on the address of the property, the seller, or its joint venture partner in the acquisition. Earlier this month, Lexington announced an expansion of its joint venture with (ING) Clarion Lion Properties Fund LLC, which invests in single-tenant net-leased real estate throughout the United States. Lexington and the Lion Fund plan to contribute an additional $25.7 million and $60 million, respectively, to the JV, increasing its acquisition capacity by $210 million (assuming 60% leverage) and taking to total equity committed to the JV to $185.7 million.

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