Park North at Monroe Building 5, Monroe, OH
MONROE, OH—Lexington Realty Trust, a New York City-based REIT, has acquired a 2.4-million-square-foot e-commerce industrial portfolio here for approximately $180 million.
The three recently constructed Class A warehouse/distribution facilities located within Park North at Monroe were sold by Atlanta-based IDI Logistics, which developed the properties.
Each property is 100% net-leased to nationally recognized tenants/guarantors, consisting of Amazon, Hayneedle/Wal-Mart, and Blue Buffalo (a division of General Mills). The portfolio has a weighted-average lease term of approximately 9.3 years and average annualized rental escalations of approximately 2%.
Lexington Realty states the portfolio transaction is consistent with its investment strategy of purchasing well-located, high-quality industrial assets as it transitions to a 100% industrial-focused net-lease REIT.
So far in 2019, the company's investment activity totals approximately $440 million at estimated GAAP and cash capitalization rates of approximately 5.6% and 5.4%, respectively. At acquisition, these investments had a weighted-average remaining lease term of 6.0 years.
Lexington reports it has approximately $170 million of warehouse/distribution properties under an accepted offer or contract.
In September 2018, Lexington made news when it announced it disposed of a 21-office asset portfolio for $726 million to a joint venture between affiliates of Davidson Kempner Capital Management LP and Lexington.
Last month in another disposition in the Cincinnati area market, IDI Logistics, announced the sale of one building in the company's Park South at Richwood complex. The new owner, a well-known global package delivery and supply chain management company, plans to expand its presence in the Cincinnati market by opening a package sort center in the facility.
The 442,304-square-foot Building I is one of seven buildings located within the master-planned Park South at Richwood logistics park in business-friendly Boone County, KY.
In another deal in August, IDI Logistics sold a five-building industrial portfolio to San Francisco-based Stockbridge for $116.5 million.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
