CapLease 2012 Acquisition Volume Grows to over $185 Million
- Agrees to Acquire Class A Office Building for $18.1 Million -
- Closes $26.1 Million Acquisition -
- Obtains $19.5 Million Financing -
NEW YORK -- December 20, 2012
CapLease, Inc. (NYSE: LSE) announced today that it that it has entered into a
binding contract to acquire a Class A office building located in the South
Central United States for a total purchase price of $18.1 million. The
Company’s average capitalization rate for the property will be about 9%. The
Company expects to close the acquisition prior to year-end which will bring
total acquisition volume for 2012 to more than $185 million.
The Company also announced that it has now closed on the previously announced
acquisition of two adjacent single tenant office properties located in
Englewood, Colorado outside of Denver for a total purchase price of $26.1
million. One property is an approximately 61,000 square foot single story
office building leased to Comcast Corporation (S&P/Moody’s: BBB+/Baa1) for a
term scheduled to mature in December 2020. The other property is an
approximately 95,000 square foot three story office building leased to Pulte
Mortgage LLC, as its corporate headquarters. Pulte Mortgage is the mortgage
banking subsidiary of PulteGroup, Inc. (S&P/Moody’s: BB-/B1), the largest
homebuilder in the United States. The Pulte lease is scheduled to mature in
March 2020. The Company’s average capitalization rate across the two
properties is approximately 9.1%.
In addition, the Company announced that it has obtained long-term financing of
the approximately 145,000 square foot Class A office building located in the
Energy Corridor of Houston, Texas which was purchased earlier this month for
$35.5 million. CapLease secured a $19.5 million first mortgage loan, which
equates to a 55% ratio of the loan principal to the Company’s purchase price.
The non-recourse mortgage loan is from a major insurance company and has a
coupon of 4.0%, with a ten year term.
Paul McDowell, Chairman and Chief Executive Officer, stated, “We have had a
terrific year in acquisitions in 2012 growing the total portfolio by about
10%. These more than $185 million in transactions have added an additional 1.2
million square feet of very high quality assets bringing the portfolio total
to more than 12 million square feet. Most importantly, at an average cap rate
of about 8.5% and with very attractive financing terms, these acquisitions
will be accretive to earnings and cash flow in the years ahead. We remain
confident that we will continue our strong momentum into 2013 and beyond.”
Completion of the pending transaction described in this press release is
subject to customary closing conditions and, therefore, no assurance can be
given that the Company will complete such transaction, or that the timing or
terms of such transaction will not differ materially from the Company’s
About the Company:
CapLease, Inc. is a real estate investment trust, or REIT, that primarily owns
and manages a diversified portfolio of single tenant commercial real estate
properties subject to long-term leases to high credit quality tenants.
Brad Cohen, 212-217-6393
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