{"id":1004562583,"date":"2022-01-04T03:00:46","date_gmt":"2022-01-04T11:00:46","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004562583"},"modified":"2022-12-01T20:42:24","modified_gmt":"2022-12-02T04:42:24","slug":"lxp-launches-550m-joint-venture","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/lxp-launches-550m-joint-venture\/","title":{"rendered":"LXP Launches $550M Joint Venture"},"content":{"rendered":"
\"\"<\/a>

904 Industrial Road in Marshall, Minn. Image courtesy of LXP Industrial Trust<\/p><\/div>\n

LXP Industrial Trust has recapitalized a 22-property, 6.7 million-square-foot, $550 million industrial portfolio, consisting primarily of manufacturing assets, through a sale to a new joint venture with an affiliate of Davidson Kempner Capital Management LP.<\/p>\n

By square footage, the portfolio is concentrated primarily in Kentucky, Maine, Michigan, South Carolina and Tennessee. The list of properties also includes assets in Marshall, Minn., and Brookshire, Texas, among others.<\/p>\n

The deal reflects LXP\u2019s single-tenant warehouse\/distribution focus, with 93 percent of the company\u2019s gross book value now invested in such facilities, up from about 16 percent at the end of 2015. LXP will retain a 20 percent interest in the venture.<\/p>\n

The new joint venture obtained a $381 million, 2-year non-recourse mortgage secured by 21 assets, with three 1-year extension options. The venture also assumed about $26 million of non-recourse financing secured by an asset in Michigan.<\/p>\n

On the equity side, the partnership includes a $250 million additional equity commitment on a pro rata basis for future acquisitions of single-tenant special purpose industrial properties outside of LXP\u2019s core warehouse\/distribution focus.<\/p>\n

Eastdil Secured was the financial advisor on the recapitalization.<\/p>\n

Distillation process<\/h2>\n

As of the third quarter, LXP\u2019s pro forma industrial portfolio consisted of 102 warehouse\/distribution assets totaling 48.8 million square feet and 99 percent leased, with an average age of about 9 years.<\/p>\n

According to LXP, the transaction helps advance its warehouse\/distribution strategy, providing about $487 million of estimated net proceeds to satisfy credit line borrowings and fund warehouse\/distribution investments and adding a committed capital source to provide specialized industrial real estate financing options to existing LXP tenants and merchant builder relationships.<\/p>\n

In a telling note, an LXP presentation stated that the transaction \u201ccapitalizes on the underlying macro trend of de-globalization leading to increased supply chain redundancies and reshoring of means of production.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Recapitalizing 22 properties advances the company’s planned repositioning.<\/p>\n","protected":false},"author":882,"featured_media":1004562584,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,21748,21783,23891,21742],"tags":[41918,51520],"class_list":["post-1004562583","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-industrial","category-investment","category-national","category-latest","tag-davidson-kempner-capital-management","tag-lxp-industrial-trust"],"acf":[],"yoast_head":"\nLXP Launches $550M Joint Venture - 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\/lxp-launches-550m-joint-venture\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LXP Launches $550M Joint Venture\" \/>\n<meta property=\"og:description\" content=\"Recapitalizing 22 properties advances the company's planned repositioning.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/lxp-launches-550m-joint-venture\/\" \/>\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=\"2022-01-04T11:00:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-02T04:42:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/01\/904-Industrial-Road-in-Marshall-Minn.-Image-courtesy-of-e1641293921328.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"428\" \/>\n\t<meta property=\"og:image:height\" content=\"322\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\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\/lxp-launches-550m-joint-venture\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/lxp-launches-550m-joint-venture\/\",\"name\":\"LXP Launches $550M Joint Venture - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/lxp-launches-550m-joint-venture\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/lxp-launches-550m-joint-venture\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/01\/904-Industrial-Road-in-Marshall-Minn.-Image-courtesy-of-e1641293921328.jpg\",\"datePublished\":\"2022-01-04T11:00:46+00:00\",\"dateModified\":\"2022-12-02T04:42:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/lxp-launches-550m-joint-venture\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/lxp-launches-550m-joint-venture\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/lxp-launches-550m-joint-venture\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/01\/904-Industrial-Road-in-Marshall-Minn.-Image-courtesy-of-e1641293921328.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/01\/904-Industrial-Road-in-Marshall-Minn.-Image-courtesy-of-e1641293921328.jpg\",\"width\":428,\"height\":322,\"caption\":\"904 Industrial Road in Marshall, Minn. 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