), a real estate investment trust (REIT), recently purchased a
Class A office building in the energy corridor of Houston, Texas
for $35.5 million. The average capitalization rate for the
property is approximately 8.2%. CapLease expects to finance
this transaction with a 55% loan-to-cost non-recourse mortgage of
the property before the expiry of the current year.
Post-acquisition, the company's acquisition tally is expected to
surge to over $165 million.
Spanning 145,000 square feet, the acquired building is currently
90% leased to an Australian listed energy and resource service
engineering company titled Worley Parsons Limited. Additionally,
Cap Lease also entered into agreements to acquire two adjacent
office buildings in a major market in Southwestern United States
for $26.1 million.
The company has been very active on the acquisition front with
adequate liquidity and enough capacity to support a pipeline of
new investment opportunities. Through this strategic initiative,
Cap Lease expects to enhance its portfolio quality, which in turn
could be accretive to earnings going forward. The company
continues to add premium quality, well-located properties at
better than average returns to its portfolio.
CapLease is focused on financing and investing in commercial real
estate that is net leased primarily to single tenants with
investment grade or near investment grade credit ratings. It
provides private and corporate owners of net lease real estate
with equity, debt, and mezzanine financing option.
CapLease currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. We have a long-term Neutral
recommendation on the stock. One of its competitors,
Lexington Realty Trust
) also holds a Zacks #3 Rank.
CAPLEASE INC (LSE): Free Stock Analysis
LEXINGTON PPTY (LXP): Free Stock Analysis
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