CapLease, Inc.
(
LSE
), a real estate investment trust (REIT), has recently entered into
a build-to-suit arrangement with
Vitamin Shoppe, Inc.
(
VSI
) that operates as a specialty retailer and direct marketer of
vitamins, minerals, herbs, supplements, sports nutrition, and other
health and wellness products in the U.S. CapLease will construct a
Class A distribution warehouse spanning 311,730 square feet in
Ashland, Virginia. On completion, the property will be leased to
Vitamin Shoppe for a term of 15 years.
The site measures approximately 43 acres with the option of
expanding the proposed building by an additional 250,000 square
feet. The company entered into a development agreement with a large
developer based in the Southeast and construction is expected to be
completed during the second quarter of 2013.
CapLease's investment in the project, including construction, is
expected to be around $20 million with an average capitalization
rate of approximately 8% covering the 15-year lease term.
This project is in line with CapLease's ongoing expansion of its
build-to-suit business. In addition, the location of the
distribution facility in the strong Richmond industrial market
makes it a premium asset for the company.
Earlier in the second quarter of 2012, CapLease also funded the
construction of a 324,000 square foot Class A build-to-suit
office project in Tulsa, Oklahoma.
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 #2 Rank, which translates into a
short-term Buy rating. We also have a long-term Neutral
recommendation on the stock. One of its competitors,
Lexington Realty Trust
(
LXP
) holds a Zacks #1 Rank, which translates into a short-term Strong
Buy rating.
CAPLEASE INC (LSE): Free Stock Analysis Report
LEXINGTON PPTY (LXP): Free Stock Analysis
Report
LEXINGTON PPTY (LXP): Free Stock Analysis
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VITAMIN SHOPPE (VSI): Free Stock Analysis
Report
VITAMIN SHOPPE (VSI): Free Stock Analysis
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