CapLease Closes Acquisition of Two Office Properties for $46.0 Million
NEW YORK--(BUSINESS WIRE)-- CapLease, Inc. (LSE) announced today the closing of the purchase of a two office building complex located in Richardson, Texas outside of Dallas, for a combined purchase price of $46 million. The first building consists of about 203,000 square feet of rentable space and is leased to a large subsidiary of AT&T Inc. through March 2020. The second building consists of about 115,000 square feet of rentable space and is leased to MetroPCS Wireless, Inc. as its headquarters through November 2018. The Companys average capitalization rate over the remaining MetroPCS lease term is over 9%. The Company expects to complete a low leverage non-recourse mortgage financing of the properties within the next two weeks. An approximately $20 million first mortgage loan is expected to be priced at a coupon of below 5%, with a ten year term.
Paul McDowell, Chairman and Chief Executive Officer, stated, The acquisition of these two properties continues to demonstrate our ability to source high quality assets at better than market returns. These two Class A fungible office properties with structured parking have a very attractive yield and were acquired at a cost of about $144 per square foot which we believe is about half of replacement cost. The 400+ basis point spread between our yield and cost of debt is among the widest in the entire portfolio. With current rents at market and the about 7.25 year weighted average remaining lease term, the properties also provide us with potential upside in a strong and improving Texas economy. We look forward to continuing to add additional high quality properties over the remainder of 2012.
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.
Brad Cohen, 212-217-6393
Source: CapLease, Inc.Copyright Business Wire 2012