{"id":1004262527,"date":"2018-09-05T04:16:31","date_gmt":"2018-09-05T12:16:31","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004262527"},"modified":"2022-12-08T10:55:52","modified_gmt":"2022-12-08T18:55:52","slug":"lexington-realty-sells-office-portfolio-for-726m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/lexington-realty-sells-office-portfolio-for-726m\/","title":{"rendered":"Lexington Realty Sells Office Portfolio for $726M"},"content":{"rendered":"

By Barbra Murray<\/em><\/p>\n

\"8900<\/a>

8900 Freeport Parkway<\/p><\/div>\n

Lexington Realty Trust recently shed 21 office properties in a $726 million transaction. The REIT sold the 3.8 million-square-foot portfolio to a joint venture consisting of Davidson Kempner Capital Management LP and Lexington, leaving the latter with a 20 percent ownership interest in the assets and $565 million in cash at closing.<\/p>\n

\u201cWe are working on transitioning the portfolio toward being close to a pure play on single-tenant industrial net lease real estate,\u201d<\/em> T. Wilson Eglin, CEO of Lexington Realty Trust, said during the company\u2019s second quarter 2018 earnings conference call on August 8.<\/p>\n

The group of office properties, which is 98.6 percent leased, spans the U.S., with five assets each in the eastern and western regions; six buildings in the South; and four in the Midwest. Tenants in the 98.6 percent leased portfolio include such names as Amazon, Experian Holdings, Motel 6 and Nissan, which, along with Pacific Union Financial, occupies the 268,400-square-foot building at 8900 Freeport Parkway in Irving, Texas.<\/strong><\/p>\n

Terms of the transaction called for the joint venture to assume a total of $103 million of non-recourse financing secured separately by two assets. The 19 remaining properties served as collateral for the $363 million non-recourse mortgage loan the partners used to help finance the acquisition. For Lexington\u2019s part, in addition to holding onto a stake in the portfolio, the REIT will provide management services for the properties.<\/p>\n

Portfolio metamorphosis<\/strong><\/h2>\n

In its bid to focus its portfolio on net leased industrial assets, Lexington has already closed a total of approximately $966 million in sales year-to-date 2018. Dispositions over the last several months include CopperPorint Tower, a 252,400-square-foot Phoenix office property sold to Oak Street Real Estate Capital for approximately $64.6 million. The company also sold the 132,981-square-foot office building<\/a> at 10419 N. 30th St. in Tampa, Fla., to TCS Investor LLC. And Lexington plans to pick up the pace.<\/p>\n

\u201cWe are working very hard on accelerating the volume of office dispositions,\u201d<\/em> Eglin said during Lexington\u2019s earnings conference call. \u201cBut transitioning more quickly is not just a function of wanting to transition all the way to one asset class, but it also recognizes that, right now, it happens to be a very good sellers\u2019 market.\u201d<\/em> <\/p>\n

Image via Yardi Matrix<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The 3.8 million-square-foot collection of properties went to a joint venture in which the REIT owns a 20 percent interest.<\/p>\n","protected":false},"author":969,"featured_media":1004262581,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21783,23891,21742,21747],"tags":[41918,36727,37350],"class_list":["post-1004262527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-investment","category-national","category-latest","category-office","tag-davidson-kempner-capital-management","tag-lexington-realty-trust","tag-oak-street-real-estate-capital"],"acf":[],"yoast_head":"\nLexington Realty Sells Office Portfolio for $726M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/lexington-realty-sells-office-portfolio-for-726m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lexington Realty Sells Office Portfolio for $726M\" \/>\n<meta property=\"og:description\" content=\"The 3.8 million-square-foot collection of properties went to a joint venture in which the REIT owns a 20 percent interest.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/lexington-realty-sells-office-portfolio-for-726m\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-05T12:16:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T18:55:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/09\/8900-Freeport-Parkway.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/lexington-realty-sells-office-portfolio-for-726m\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/lexington-realty-sells-office-portfolio-for-726m\/\",\"name\":\"Lexington Realty Sells Office Portfolio for $726M - 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