CapLease, Inc. (NYSE: LSE)
announced today the closing of the long-term financing of the approximately 175,000 square foot Class A office building located in The Woodlands in Houston, Texas which was recently purchased for $40.5 million. The Company obtained a $22.4 million first mortgage loan, which equates to a 55% ratio of the loan principal amount to the Company’s purchase price. The non-recourse mortgage loan was made by a life insurance company, and was priced at a coupon of 3.7%, with a ten year term and 30 year amortization schedule with the first four years interest only.
As previously announced, the Woodlands property is 100% leased with two investment grade rated large corporate tenants occupying about 70% of the space. Approximately 61% of the square footage in the building is leased through May 2022 to Praxair, Inc., and an additional 8% of the space is leased through August 2017 to a subsidiary of Dover Corp. The remaining square footage in the building is leased by three other credit worthy tenants. The Company’s average capitalization rate for this property is slightly below 8%.
About the Company:
CapLease, Inc. is a real estate investment trust, or REIT, that primarily owns and manages single tenant commercial real estate properties subject to long-term leases to high credit quality tenants.