Lexington Realty Trust (LXP) Announces $338M Sale of Remaining NYC Land Investments
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Lexington Realty Trust (NYSE: LXP) announced that it has sold its three remaining New York City land investments for a gross sales price of approximately $338.2 million at a GAAP capitalization rate of 13.6% and a cash capitalization rate of 4.6%. In connection with the sale, approximately $213.1 million of mortgage debt was assumed by the buyer.
“The disposition of our remaining New York City land investments turned out to be a great success. These investments produced strong cash flow and capital appreciation for our shareholders and the sale came in at better than expected pricing. Furthermore, the sale has reduced our leverage considerably and produced cash to retire the outstanding balance on our revolving credit facility and fund other growth opportunities,” said T. Wilson Eglin, Chief Executive Officer and President of Lexington.
As a result of the sale, Lexington expects to record an estimated non-cash impairment charge of approximately $65.0 million in the third quarter of 2016 primarily related to the writing off of the deferred rent receivable it recognized under Generally Accepted Accounting Principles (GAAP).
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