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CapLease, Inc. (NYSE: LSE)
announced today that it has entered into a build-to-suit arrangement to construct a state-of-the-art 311,730 square foot distribution warehouse in Ashland, Virginia outside of Richmond for Vitamin Shoppe Industries, Inc. The Company has entered into a 15 year net lease which will commence upon completion of construction. The Company has acquired the approximately 43 acre land site, and entered into a development agreement with a large Southeast based developer. Construction is expected to commence immediately and be completed during the early part of the second quarter of 2013. When complete, the Company’s total investment is expected to be about $20 million and its average capitalization rate will be approximately 8% over the 15 year lease term.
Paul McDowell, Chairman and Chief Executive Officer, stated, “This sought after build-to-suit project came to us on a direct basis as a result of our strong reputation and deep penetration across the net lease market. The highly fungible asset will be among the top Class A buildings in the perennially strong Richmond, Virginia industrial market, and will include excess land to accommodate an expansion of over 250,000 square feet. We continue to expand the build-to-suit business and expect it will comprise a significant component of our new investment activity in the future.”
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.