Lexington Corporate Properties Trust Announces Acquisition in Downtown Honolulu, Hawaii |
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By: Lexington Corporate Properties Trust Posted: 2006-12-25 23:08:35 |
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Lexington Corporate Properties Trust ("Lexington") (NYSE: LXP), a real estate investment trust, today announced that it acquired the fee-simple interest in the buildings comprising one city block ("Honolulu Super Block") in downtown Honolulu, Hawaii for a purchase price of approximately $34.7 million from Campbell Hawaii Investors LLC and Austin Interests.
Honolulu Super Block, bordered by three main downtown streets (South King, Bethel, and South Hotel Streets) and one major pedestrian thoroughfare (Fort Street mall), currently houses three low-rise multi-tenant office/retail buildings and one building under a condominium property regime comprised of a two-story retail building occupied by Macy's and an attached 5-story parking garage. The block is centrally located near the core of Honolulu's Central Business District, Chinatown and the growing Arts & Culture district and is one of the few remaining redevelopment sites in urban Honolulu with 450 foot building height potential. Honolulu Super Block encompasses 79,461 square feet of land area, improved with buildings totaling 297,441 rentable square feet. Under current zoning, the property is expected to support mixed use development of up to 595,000 square feet. The existing buildings are approximately 97% leased under leases which expire by the end of 2012. Lexington acquired a leasehold position in the Macy's department store on Honolulu Super Block in December, 1996 for approximately $10.6 million. The Macy's department store consists of 85,610 rentable square feet. Commenting on the acquisition, John B. Vander Zwaag, Executive Vice President, said, "This acquisition demonstrates an important advantage of investing in properties subject to long-term net leases. Through our leasehold investment in Macy's department store, we have been witness to the growth of the downtown Honolulu market and the corresponding increase in property values, and we were able to capitalize on this rare opportunity to purchase a prime block in downtown Honolulu." Andrew Friedlander and Jon-Eric Greene of Colliers Monroe Friedlander in Honolulu represented the seller. Lexington has no immediate plans to develop the property and has retained Colliers Monroe Friedlander to lease and manage the property. About Lexington Lexington is a real estate investment trust that owns and manages office, industrial and retail properties net-leased to major corporations throughout the United States and provides investment advisory and asset management services to investors in the net lease area. Lexington currently pays an annualized regular dividend of $1.46 per share. On July 23, 2006, Lexington and Newkirk Realty Trust, Inc. entered into an agreement and plan of merger that provides for the merger of Newkirk with and into Lexington. The merger, which has been approved by Lexington's board and shareholders and Newkirk's board and voting stockholders, is expected to be consummated at year end. This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under Lexington's or Newkirk's control which may cause actual results, performance or achievements of Lexington or Newkirk 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 factors and risks detailed in Lexington's and Newkirk's periodic filings with the Securities and Exchange Commission. Neither Lexington nor Newkirk undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's or Newkirk's expectations will be realized. |
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