An affiliate of Davidson Kempner Capital Management LP acquired 80% stake in 22-property special purpose industrial portfolio from LXP Industrial Trust.
January 02, 2022
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An affiliate of Davidson Kempner Capital Management LP entered into an agreement to acquire 80% stake in 22-property special purpose industrial portfolio from LXP Industrial Trust (NYSE:LXP) on December 29, 2021. The total gross valuation of portfolio is $550 million and represents cash capitalization rates of 7.4% and 7.2%, respectively. LXP will retain a 20% interest. The transaction provides LXP with approximately $487 million of estimated net proceeds to satisfy credit line borrowings and fund warehouse/distribution investments. The new joint venture between Davidson Kempner Capital and LXP obtained a $381 million non-recourse mortgage loan secured by 21 assets, with a term of two years and three one-year extension options, at one-month Term Secured Overnight Financing Rate (SOFR) plus 245 basis points. In addition, the new joint venture assumed approximately $26 million of non-recourse financing secured by the Warren, Michigan asset. Eastdil Secured acted as financial advisor for LXP. Jonathan Eiseman of Eiseman Levine Lehrhaupt & Kakoyiannis, PC acted as legal advisor to LXP. Craig Brown of Dechert LLP acted as legal advisor to Davidson Kempner.
An affiliate of Davidson Kempner Capital Management LP completed the acquisition of 80% stake in 22-property special purpose industrial portfolio from LXP Industrial Trust (NYSE:LXP) on December 29, 2021.
LXP Industrial Trust is a real estate investment trust focused on single-tenant industrial real estate investments across the United States. The Company invests in single-tenant warehouse/distribution real estate. The Company conducts its operations indirectly through property owner subsidiaries, which are single purpose entities; a wholly owned taxable REIT subsidiaries (TRS), Lexington Realty Advisors, Inc., and joint ventures. It has investments in the Lower Midwest and Sunbelt. The Company's warehouse/distribution portfolio includes various industries, such as electronic commerce, automotive, construction/materials, food, apparel, specialty, technology, retail department, aerospace/defense, healthcare, consumer products, transportation/logistics and others. It has ownership interests in approximately 115 consolidated real estate properties, located in 18 states and containing an aggregate of approximately 54.6 million square feet of space, approximately 99.8% of which is leased.
An affiliate of Davidson Kempner Capital Management LP acquired 80% stake in 22-property special purpose industrial portfolio from LXP Industrial Trust.
LXP INDUSTRIAL TRUST 
