NEW YORK, July 20, 2016 (GLOBE NEWSWIRE) -- Lexington Realty Trust (NYSE:LXP) (“Lexington”), a real estate investment trust (REIT) focused on single-tenant real estate investments, today announced that it has closed on a $197.2 million non-recourse first mortgage loan secured by its build-to-suit project in Lake Jackson, Texas. Lexington committed to fund up to $166.2 million for the project in 2014 and has an investment balance of $83.9 million as of June 30, 2016. The project, expected to be substantially completed in the fourth quarter of 2016, is net-leased to The Dow Chemical Company for a 20-year term upon completion. The loan bears interest at a fixed rate of 4.04% and provides for an approximately $11.3 million balloon payment at maturity in October 2036.
Lexington will use the net proceeds for general working capital purposes which could include build-to-suit fundings and paying down on its revolving credit facility.
“This financing is a great example of how we can selectively use secured financing to create immediate substantial value for our shareholders while executing on our build-to-suit investment strategy. Due to a favorable rate environment and strong tenant credit, we were able to obtain $197 million of 20-year financing at an attractive interest rate, and we will retire credit facility borrowings and extend our weighted average debt maturity as contemplated in our 2016 business plan,” commented T. Wilson Eglin, Chief Executive Officer and President of Lexington Realty Trust.
ABOUT LEXINGTON REALTY TRUST
Lexington Realty Trust (NYSE:LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity and debt investments in single-tenant net-leased commercial properties and land across the United States. Lexington seeks to expand its portfolio through build-to-suit transactions, sale-leaseback transactions and acquisitions. For more information or to follow Lexington on social media, visit www.lxp.com.
Contact: Investor or Media Inquiries for Lexington Realty Trust: Heather Gentry, Senior Vice President of Investor Relations Lexington Realty Trust Phone: (212) 692-7200 E-mail: firstname.lastname@example.org
Source:Lexington Realty Trust