Lexington Realty Trust Announces Joint Venture Investment in Humble, Texas
Lexington Realty Trust (NYSE: LXP), a real estate investment trust, announced Monday that a joint venture with an 85% equity partner closed on the acquisition of an inpatient rehabilitation hospital in Humble, Texas for $27.8 million. The hospital contains approximately 55,650 square feet and is net leased to SRP Triumph NE Houston, LP for a remaining term of approximately 17 years. The base rent under the lease increases by 2.5% each year during the term of the lease. The obligations of the tenant under the lease are unconditionally guaranteed by RehabCare Group and Kindred Healthcare. The initial and average annual rent during the lease term is approximately 8.0% and 9.85%, respectively, of the purchase price.
The acquisition was partially funded by a $15.3 million non-recourse mortgage with a 4.7% interest rate and maturity date in May 2017.
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