CapLease, Inc. (NYSE: LSE)
announced today the closing of the previously announced purchase of an approximately 145,000 square foot Class A office building located in the Energy Corridor of Houston, Texas for a purchase price of $35.5 million. The building is 90% leased to WorleyParsons Limited, an Australian listed energy and resource service engineering company with a market capitalization of over $6 billion. The WorleyParsons lease runs through December 2019. The remaining square footage in the building is leased by two other credit worthy tenants.
CapLease’s average capitalization rate for the property is approximately 8.2%. The Company expects to complete a 55% loan-to-cost non-recourse mortgage of the property prior to December 31, 2012. The approximately $19.5 million first mortgage loan is expected to be priced at a coupon of 4%, with a ten year term.
CapLease also announced that it that it has entered into a binding contract to acquire two adjacent office buildings in a major market in the Southwestern United States for a total purchase price of $26.1 million. The Company’s average capitalization rate for the properties will be over 9%. CapLease expects to close the acquisition prior to December 31, 2012.
Paul McDowell, Chairman and Chief Executive Officer, stated, “As we have done consistently over the last two years, these latest acquisitions demonstrate our ability to add high quality, well located properties at better than average returns. We are also optimistic we will be able to add at least one more high quality accretive transaction to the portfolio prior to year-end, and our recently announced block sale of common stock through the ATM program has given us the capital to close within that timeframe.”
Completion of the pending transactions described in this press release is subject to customary closing conditions and, therefore, no assurance can be given that CapLease will complete such transactions, or that the timing or terms of such transactions will not differ materially from CapLease’s expectations.