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THE CHERRY ON TOP OF TRANSAMERICA TOWER
June 14, 2012
| Lexington Realty Trust put in the work to lease up Transamerica Tower and wanted the payoff. That's why the REIT levered up on the debt-free property with a $55M loan. (Some treat themselves to an ice cream cone for a job well done; Lexington adds a little debt.) |
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| Could the REIT have scored a loan without Miles & Stockbridge's 120k SF lease, which starts in April? "We didn't try," says Lexington Realty Trust's Joe Bonventre. He tells us the 4.3%, 10-year life company loan, which expires in 2023, was the best way to realize Lexington Realty Trust's investment and effort while getting some capital now. Transamerica is signed on til 2022, Ober|Kaler til 2026, and Miles & Stockbridge until 2028 (by which time all work will be done via hologram, so no leases will be needed anyway). About 24k SF remains, and Joe tells us Lexington will lease it at market rate. |
