Net Lease Office Properties Announces Sale of Office Property for $72 Million

Rhea-AI Summary

Net Lease Office Properties (NYSE: NLOP) has announced the sale of an office property leased to CVS Health for $71.5 million. The property, located in Scottsdale, AZ, spans 354,888 square feet and had an annual base rent of $4.25 million. Net proceeds were used to repay approximately $55 million on J.P. Morgan's senior secured mortgage and $8 million on its mezzanine loan. After the sale, NLOP's portfolio consists of 46 office properties, including 43 in the U.S. and 3 in Europe. The transaction has reduced NLOP's outstanding loan balances to approximately $74 million for the senior secured mortgage and $81 million for the mezzanine loan as of August 7, 2024.

Positive

• Sale of office property for $71.5 million, generating significant cash
• Reduction of debt by approximately $63 million
• Maintained a portfolio of 46 high-quality office properties after the sale

Negative

• Decrease in property portfolio size and potential rental income
• Reduction in U.S. market presence with the sale of a large office property

NEW YORK, Aug. 8, 2024 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) today announced the sale of an office property leased to CVS Health Corporation ("CVS") for gross proceeds of $71.5 million.

Primary Tenant	Primary Tenant Industry	Location	ABR (at time of sale)	Gross Sale Proceeds	Square Feet	NLOP Collateral Pool
CVS	Health Care Services	9501 Shea Boulevard, Scottsdale, AZ	$4.25 million	$71.5 million	354,888	Included

Net proceeds after closing costs were used to repay approximately $55 million on J.P. Morgan's senior secured mortgage and approximately $8 million on its mezzanine loan, in accordance with terms of those facilities. In conjunction with approximately $4 million of funds from other sources, this resulted in outstanding balances of approximately $74 million and $81 million, respectively, as of August 7, 2024.

Following the sale, NLOP owned 46 office properties, comprising 43 properties in the U.S. and three properties in Europe.

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 the balance located in Europe.

www.nloproperties.com

Institutional Investors: 
1-212-492-1140
institutionalir@nloproperties.com

Individual Investors: 
1-844-NLO REIT (656-7348)
ir@nloproperties.com

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

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SOURCE Net Lease Office Properties

FAQ

What was the sale price of the CVS-leased office property sold by NLOP?

Net Lease Office Properties (NLOP) sold the CVS-leased office property for $71.5 million.

How did NLOP use the proceeds from the office property sale?

NLOP used the net proceeds to repay approximately $55 million on J.P. Morgan's senior secured mortgage and $8 million on its mezzanine loan.

How many properties does NLOP own after the sale announced on August 8, 2024?

After the sale, NLOP owned 46 office properties, comprising 43 properties in the U.S. and three properties in Europe.

What were NLOP's outstanding loan balances after the property sale?

As of August 7, 2024, NLOP's outstanding balances were approximately $74 million for the senior secured mortgage and $81 million for the mezzanine loan.