Lexington Executes 12-State, $726M Portfolio Disposition with Davidson Kempner JV
New York-based Lexington Realty Trust disposed of a portfolio of 21 properties across the U.S. to a joint venture between affiliates of Davidson Kempner Capital Management LP (DKCM) and Lexington for $726 million. The 12-state transaction was completed at GAAP and cash capitalization rates of 8.6% and 8.1%, respectively.
Lexington’s T. Wilson Eglin says, “This transaction marks a major step forward as we execute on our strategy to efficiently recycle capital out of suburban office properties and concentrate our portfolio on single-tenant net-leased industrial 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 properties are 98.6% leased, and are comprised of roughly 3.8 million square feet with a weighted-average remaining lease term of approximately 9.5 years and a weighted-average age of 23 years. The joint venture is 80% owned by affiliates of DKCM, with Lexington retaining a 20% interest.
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*Pictured 9201 East Dry Creek Rd. Centennial, CO