Lennox Group Completes $27 Million Sale Leaseback of Distribution Center in MD

SEC Edgar Filings - December 28, 2006:

On December 11, 2006, Lennox Group, Inc. entered into a Purchase and Sale Agreement with First Industrial Acquisitions, Inc. for the sale of 16507 Hunters Green Parkway, Hagerstown, Maryland for $27.0 million. On December 28, 2006, the Company closed this transaction and received net proceeds of $26,266,575.18 which have been applied to pay down outstanding debt under the Company’s Term Loan Credit Agreement.

In conjunction with the closing of the sale, Lenox, Inc., a wholly owned subsidiary of Lenox Group Inc, agreed to lease the property, consisting of approximately 40 acres of land and a distribution center of approximately 506,003 rentable square feet, for a non-terminable primary term of 15 years. The Company will pay annual base rent of $1,922,820.00 (7.12% cap rate) with a 2% annual escalation beginning in year two of the Lease. The Company will continue to use the Property for its distribution operation and will be responsible for all operating expenses, including, but not limited to, taxes and insurance on the Property and the cost of services, repairs, maintenance and/or replacements to the Property. Sphere: Related Content