TUCSON, AZ (January 19, 2024) — Net Lease Office Properties (NYSE: NLOP) announced the sale of four office assets across three states for approximately $43.1 million.
The properties included a 143,650-square-foot building at 3350 E Hemisphere Loop in Tucson, Ariz., for $24.575 million ($171 PSF) leased to Raytheon Corp. plus 5.78 acres of excess land.
As well as three additional properties in Michigan and Minnesota:
- A 58,722-square-foot asset in Dearborn, Mich., home to Carhartt Inc. sold for $9.8 million ($167 PSF);
- a 70,000-square-foot building in Plymouth, Mich., that is primarily leased to AVL Michigan Holding Corp. sold for $6.2 million ($89 PSF);
- and a 29,916-square-foot property leased to BCBSM Inc. in Eagan, Minn. sold for $2.5 million ($84 PSF).
Net proceeds after closing costs and funds from other sources were used to repay approximately $46 million on J.P. Morgan’s senior secured mortgage and approximately $6 million on its mezzanine loan.
In November 2023, W.P. Carey spun off Net Lease Office Properties as a separate, publicly traded real estate investment trust.
Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust that owns a portfolio of high-quality office properties primarily leased to corporate tenants on a single-tenant net lease basis. Tenants operate across various industries, and the vast majority of properties are located in the U.S., with the balance located in Europe.
After the dispositions, NLOP owned 55 office properties, 50 of which are in the U.S. and five in Europe.
Peter Bauman and Tivon Moffitt with Marcus & Millichap Institutional Property Advisors (Phoenix) represented the seller in the Tucson transaction that closed on January 4, 2024. The buyer in Tucson was Vertical Ventures, a private REIT with offices in CA, NY, TX, and Dubai, UAE.
Moffitt and Bauman can be reached at 602.687.6700.
To learn more, see RED Comp #11100