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NEW YORK CITY-Lexington Corporate Properties Trust, a locally based REIT, has acquired five industrial/manufacturing sites throughout Kentucky in a sale-leaseback transaction. For an aggregate purchase price of $78.5 million, the company took the properties form Dana Commercial Credit Corp. a wholly owned subsidiary of Dana Corp. Each property is now net leased to Dana for the next 20 years.
The properties in question include the 539,592-sf single-story site at 750 North Black Branch Rd. in Elizabethtown, KY. It has a two-story office component. Nearby is the 167,770-sf site at 730 North Black Branch Rd. It is also a single-story property with a two-story office component. Next is the 410,844-sf 301 Bill Breyer Rd. site in Hopkinsville, KY and the 162,648-sf 3010 Airpark Dr. site in Owensboro. The final site is a single-story light-industrial property measuring 336,350 sf at 10000 Business Blvd. in Dry Ridge.
To finance the acquisition, Lexington obtained a $67.5-million of non-recourse first mortgage loans from Countrywide Financial, secured by individual first mortgages on each of the properties. The loans, which will bear interest at a fixed rate of 4.96% and mature in 10 years, remain subject to final documentation and standard closing conditions.
Last week, LXP obtained a $200-million unsecured revolving credit facility which replaces the firm's existing $100-million credit facility. It bears interest at a rate of 120-170 basis points over Libor depending on Lexington's overall level of indebtedness. Patrick Carroll, Lexington's chief financial officer, says the REIT's portfolio growth and balance sheet improvement over the last two years has allowed the company to increase borrowing capacity and lower financing costs. "The new credit facility provides Lexington with added financial flexibility and more attractive short-term borrowing costs."
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