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CapLease, Inc. (NYSE: LSE)
announced today that it has entered into a contract to acquire a Class A office building in a major Southern city for a purchase price of $35.5 million, with closing scheduled before year-end. The average capitalization rate for the transaction is in excess of 8%.
Paul McDowell, Chairman and Chief Executive Officer, stated, “The addition of this property will be accretive to earnings and cash flow, and will lengthen the average remaining lease term across the owned property portfolio. The acquisition continues our strong growth momentum, bringing total expected acquisition volume for 2012 to over $140 million. We expect to finance our investment with a 55% loan-to-cost non-recourse mortgage of the property and given the continued favorable financing environment for high quality properties like this one, we expect the asset to produce among the widest spreads in the entire portfolio. Our pipeline remains robust with numerous transactions at various stages of review. We look forward to continuing to add accretive, high quality properties for the remainder of 2012 and beyond.”
CapLease expects to close and finance the acquisition described in this press release prior to December 31, 2012. However, closing is subject to completion of due diligence and customary closing conditions and, therefore, no assurance can be given that CapLease will complete the acquisition or related financing, or that the timing or terms of such transactions will not differ materially from CapLease’s expectations.
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.