Lexington Corporate Properties, Inc. Agrees to Acquire General Motors Property for $13.875 Million
3 December 1997
Lexington Corporate Properties, Inc. Agrees to Acquire General Motors Property for $13.875 Million
NEW YORK, Dec. 3 -- Lexington Corporate Properties, Inc.
, a real estate investment trust, today announced that it has
signed a definitive agreement to acquire a 184,000 square foot
office/manufacturing facility in Auburn Hills, Michigan. The purchase price
will be a maximum of $13.875 million. The property will be net-leased to
General Motors Corporation .
The Property
The property consists of an existing 103,000 square foot light industrial
facility built in 1988 on twelve acres of land. The existing building will be
renovated and an 81,000 square foot expansion completed in the third quarter
of 1998 when Lexington will acquire the property.
The property will be net-leased to General Motors Corporation for eight
years. On the basis of a project cost of $13.875 million, the annual net rent
during the first four years of the lease would be $1,326,000, or more than
9.5% of the estimated purchase price, which would escalate at the end of the
fourth lease year by 6% to about $1,406,000. The average annual net rent
payable during the lease term would be $1,366,000, or 9.85% of the purchase
price.
Comments From Management
Richard J. Rouse, Vice Chairman and Co-Chief Executive Officer, who heads
Lexington's acquisition department, commented, "I am pleased to announce our
second forward commitment to acquire a "build-to-suit" project. So far we
have committed to acquire two properties in 1998 for a total of $29.0 million.
With our recently completed 2.5 million share stock offering we are well
positioned to achieve our goal of $225 million of acquisitions in 1998."
Lexington Corporate Properties, Inc. is a self-managed and self-
administered real estate investment trust that owns and manages a 6.9 million
square foot portfolio of 46 triple-net-lease properties and minority interests
in two additional properties. The Company's properties, which are located in
24 states, include warehouses, distribution centers, manufacturing facilities
and office and retail properties net-leased to tenants such as Bank One
Arizona, N.A., Circuit City Stores, Inc., FirstPlus Financial Group, Inc., The
Hartford Fire Insurance Company, Honeywell, Inc., Lockheed Martin Corporation
and Northwest Pipeline Corporation. Shares of Lexington common stock closed
Tuesday, December 2, 1997 at $14.75 per share. Lexington, which pays an
annualized dividend of $1.16 per share, has approximately 16.5 million
preferred and common shares outstanding and approximately 3.0 million
operating partnership units outstanding, substantially all of which carry a
current dividend yield at or below that paid on the Company's common stock and
which are exchangeable into common stock on a one-for-one basis at certain
points in the future.
For more information on Lexington Corporate Properties, via fax at no
charge, please dial 1-800-PRO-INFO and enter ticker symbol LXP.
This release contains certain forward-looking statements which involve
known and unknown risks, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the results, performance, or
other expectations implied by these forward-looking statements. These factors
include, but are not limited to, those detailed in the Company's periodic
filings with the Securities and Exchange Commission.
SOURCE Lexington Corporate Properties, Inc.