According to Lexington Realty Trust, a real estate investment trust (REIT), a joint venture with an 85% equity partner closed on the acquisition of an inpatient rehabilitation hospital for $27.8 million. The hospital contains 55,650 s/f and is net leased to SRP Triumph NE Houston, LP for a remaining term of 17 years. The base rent under the lease increases by 2.5% each year during the term of the lease. The obligations of the tenant under the lease are unconditionally guaranteed by RehabCare Group, Inc. and Kindred Healthcare, Inc. The initial and average annual rent during the lease term is approximately 8% and 9.85%, respectively, of the purchase price.
The acquisition was partially funded by a $15.3 million non-recourse mortgage with a 4.7% interest rate and maturity date in May 2017.

Lexington Realty Trust is a real estate investment trust that owns, invests in and manages single-tenant office, industrial and retail properties leased to major corporations throughout the United States.
Lexington also provides investment advisory and asset management services to investors in the single-tenant area. Tags: