Lexington Realty acquires three property industrial portfolio for $180M
Lexington Realty Trust announced that it has acquired a 2.4M square foot e-commerce industrial portfolio from Atlanta-based developer and manager IDI Logistics for approximately $180M. The portfolio consists of three recently constructed, Class A warehouse/distribution facilities located within Park North at Monroe, an established logistics park developed by IDI Logistics along Interstate 75 in a strong industrial submarket of Cincinnati, Ohio. Each property is 100% net-leased to nationally recognized tenants/guarantors, consisting of Amazon, Hayneedle/Wal-Mart, and Blue Buffalo. The portfolio has a weighted-average lease term of approximately 9.3 years and average annualized rental escalations of approximately 2%. This portfolio transaction is consistent with Lexington's investment strategy of purchasing well-located, high-quality industrial assets as it transitions to a 100% industrial-focused net-lease REIT. To date, 2019 investment activity totals approximately $440M at estimated GAAP and cash capitalization rates of approximately 5.6% and 5.4%, respectively. At acquisition, these investments had a weighted-average remaining lease term of 6.0 years. Additionally, Lexington has approximately $170M of warehouse/distribution properties under an accepted offer or contract.