A Lexington Realty Trust holding. Photo by Lexington.NEW YORK CITY–Lexington Realty Trust, a REIT that focuses primarily on net-lease industrial investments, has recapitalized a 21-office portfolio via a $726 million sale to a JV between New York-based Davidson Kempner Capital Management LP and Lexington. The joint venture is 80% owned by affiliates of DKCM with Lexington retaining a 20% interest. The REIT will collect asset management fees to manage the properties.
Following the transaction, Lexington's percentage of industrial assets based on consolidated revenue is expected to increase to 60% from 44% at year-end 2017.
The transaction is part of the REIT's strategy to recycle capital out of its suburban office properties and to concentrate on single-tenant net-leased industrial properties, according to CEO T. Wilson. The REIT will use the proceeds to acquire industrial properties and repay its revolving credit facility and other debt, he also said.
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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.
