Net Lease Office Properties Announces Sale of Two Office Properties Totaling $61 Million

Rhea-AI Summary

Net Lease Office Properties (NYSE: NLOP) announced the sale of two office properties in Eagan, MN, leased to Blue Cross Blue Shield, for $60.7 million. The net proceeds were used to repay $48 million on J.P. Morgan's senior secured mortgage and $8 million on a mezzanine loan, reducing the outstanding balances to $151 million and $92 million, respectively, as of June 10, 2024. Post-sale, NLOP owns 47 office properties, including 44 in the U.S. and 3 in Europe, with three remaining properties leased to Blue Cross Blue Shield.

Positive

• Gross proceeds of $60.7 million from the sale of two office properties.
• Reduction of senior secured mortgage to $151 million.
• Reduction of mezzanine loan to $92 million.
• Maintains a diversified portfolio with 47 properties post-sale.

Negative

• Reduced property count from sale, affecting future rental income.
• Remaining significant outstanding balances of $151 million and $92 million on loans.

News Market Reaction – NLOP

+5.20%

1 alert

+5.20% News Effect

On the day this news was published, NLOP gained 5.20%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, June 11, 2024 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) today announced the sale of two office properties leased to BCBSM, Inc. ("Blue Cross Blue Shield") for gross proceeds totaling $60.7 million.

Primary Tenant	Primary Tenant Industry	Locations	ABR (at time of sale)	Gross Sale  Proceeds	Square Feet	NLOP Collateral Pool
Blue Cross Blue Shield	Managed Health Care	1800 and 3400 Yankee Doodle Road, Eagan, MN	$4.7 million	$60.7 million	347,472	Included

Net proceeds after closing costs were used to repay approximately $48 million on J.P. Morgan's senior secured mortgage and approximately $8 million on its mezzanine loan, in accordance with terms of those facilities. This resulted in outstanding balances of approximately $151 million and $92 million, respectively, as of June 10, 2024.

Following the sale, NLOP owned 47 office properties, comprising 44 properties in the U.S., including three remaining properties leased to Blue Cross Blue Shield, 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 properties did NLOP sell in June 2024?

NLOP sold two office properties located at 1800 and 3400 Yankee Doodle Road, Eagan, MN.

How much did NLOP sell the properties for?

NLOP sold the properties for $60.7 million.

What are the outstanding loan balances for NLOP post-sale?

Post-sale, the outstanding balances are $151 million on the senior secured mortgage and $92 million on the mezzanine loan.

How many properties does NLOP own after the sale?

NLOP owns 47 office properties after the sale.

Were the sold properties leased to any tenants?

Yes, the properties were leased to Blue Cross Blue Shield.