A piece of a larger restructuring plan for Lexington, a REIT focused on single-tenant real estate investments, the program has been steadily absorbing Lexington's assets. Most recently, the two partners revealed that the co-investment program is under contract to acquire a property in Garland, TX and a property in the Woodlands, TX from Lexington and its subsidiaries. The sale of these two additional properties is expected to close in Q2 2008.
Last December, the co-investment program closed, for $408.5 million, on 30 primarily single-tenant net leased assets from Lexington and its subsidiaries. This particular sale encompassed 30 properties equaling more than 3.5 million net rentable sf in 23 states.
Lexington created the co-investment program in August. At the time, in a statement, the company said the program "under contract to acquire 53 primarily single-tenant net leased assets from Lexington and its subsidiaries for an aggregate purchase price of $940 million--including the assumption of non- recourse first mortgage financing secured by certain of the assets."
T. Wilson Eglin, president and CEO of Lexington has previously noted that "we believe that the capital committed to this co-investment program will allow us to pursue additional growth opportunities that will benefit our shareholders in the near and far term while generating attractive returns. In addition, the transaction is expected to generate significant capital to redeploy into other investment opportunities."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
