Net Lease Office Properties Announces Sales of Five Office Properties Totaling $43 Million

News provided by

Jan 10, 2025, 07:30 ET

J.P. Morgan Senior Secured Mortgage Repaid in Full

NEW YORK, Jan. 10, 2025 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) today announced the sale of the following five office properties in November and December for gross proceeds totaling $43.3 million.

Primary Tenant	Primary Tenant Industry	Location	ABR (at time of sale)* ($000s)	Gross Sale Proceeds ($000s)	Square Feet	NLOP Collateral Pool
Caremark RX, L.L.C.	Health Care Services	Chandler, AZ	$1,645	$15,000	183,000	Included
Vacant (formerly BCBSM, Inc.)	N/A	Eagan, MN	$--	$11,650	227,666	Included
Charter Communications Operating, LLC	Cable & Satellite	Bridgeton, MO	$820	$7,350	78,080	Included
Merative L.P.	IT Consulting & Other Services	Hartland, WI	$669	$6,750	81,082
Cofinity, Inc./ Aetna Life Insurance Co.	Multi-line Insurance	Southfield, MI	$1,833	$2,500	94,453	Included
Total			$4,967	$43,250	664,281
* Pro forma for any agreed to and signed future rent restructurings.

Net proceeds after closing costs for the collateral pool assets were used to repay approximately $30 million on J.P. Morgan's senior secured mortgage and approximately $5 million on its mezzanine loan, in accordance with terms of those facilities. In conjunction with approximately $23 million of funds from other sources, this resulted in the full repayment of J.P. Morgan's senior secured mortgage and an outstanding balance of approximately $61 million on its mezzanine loan as of December 31, 2024.

Office property sales during the fourth quarter brought total gross proceeds from dispositions completed during 2024 to approximately $364 million, including occupied sales of $319 million at a weighted-average disposition cap rate of approximately 10.5%**.

As of December 31, 2024, NLOP owned 39 office properties, comprising 37 properties in the U.S. and two in Europe.

** Excludes two assets transferred to the mortgagee and the sale of one vacant asset.

Net Lease Office Properties

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 a variety of industries and the vast majority of properties are located in the U.S., with two located in Europe.

www.nloproperties.com

Institutional Investors:
1-212-492-1140
[email protected]

Individual Investors:
1-844-NLO REIT (656-7348)
[email protected]

Press Contact:
Anna McGrath
1-212-492-1166

SOURCE Net Lease Office Properties