JV Spends $31M for Industrial Buildings

WESTON, FL-A joint venture investment program of Lexington Corporate Properties Trust acquired two industrial buildings totaling 432,445 sf in the city for a total of $30.6 million.

The smaller property, net-leased to Hagemeyer Foods NA Inc. through Dec. 31, 2012, commanded the biggest overall sale price. The 201,845-sf distribution and cold storage facility sold for $18.1 million, or about $89.67 per sf. The property was built in 1995 on 15.1 acres at 3225 Meridian Parkway.

Related to the purchase, the Lexington joint venture arranged to get about $10.9 million in non-recourse first mortgage financing from an undisclosed lender. The loan has a 5.42% fixed interest rate and matures in December 2012.

The other, adjacent property is net-leased to Circuit City Stores Inc. through Feb. 28, 2017. That 230,600-sf distribution facility, built in 1995 on 16.1 acres at 3245 Meridian Parkway, sold for $12.5 million, or about $54.20 a sf.

Related to this purchase, the Lexington joint venture arranged to get $7.5 million in non-recourse first mortgage financing, also from an undisclosed lender. The loan has a fixed interest rate of 5.52% and matures in February 2017.

Dick Rouse, chief investment officer for Lexington, says the properties fit the profile of what the company looks for in an acquisition. “Lexington basically buys single-tenant office, industrial and retail properties, and these fall within that,” he says. He adds the company looks for “long-term leases to good-credit tenants.” Both the Hagemeyer Foods and Circuit City leases are long-term.

Rouse would not disclose the sellers of the properties.