Net Lease Office Properties Announces Sales of Five Office Properties Totaling $43 Million
Rhea-AI Summary
Net Lease Office Properties (NYSE: NLOP) has announced the sale of five office properties for total gross proceeds of $43.3 million in November and December 2024. The properties, located across various U.S. states, include facilities previously leased to Caremark RX, Charter Communications, Merative L.P., and other tenants, totaling 664,281 square feet.
The net proceeds were used to repay approximately $30 million on J.P. Morgan's senior secured mortgage and $5 million on its mezzanine loan. Combined with other funds, this resulted in the full repayment of the senior secured mortgage, leaving an outstanding balance of about $61 million on the mezzanine loan as of December 31, 2024.
The company's total dispositions for 2024 reached $364 million, with occupied sales of $319 million at a weighted-average disposition cap rate of 10.5%. As of year-end 2024, NLOP's portfolio consisted of 39 office properties, with 37 in the U.S. and two in Europe.
Positive
- Full repayment of J.P. Morgan senior secured mortgage
- Successful completion of $364 million in property dispositions during 2024
- Strong weighted-average disposition cap rate of 10.5% on occupied sales
Negative
- One of the five properties sold was vacant at time of sale
- Sale prices appear to be influenced by challenging office market conditions
- Substantial remaining mezzanine loan balance of $61 million
News Market Reaction
On the day this news was published, NLOP gained 1.03%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
J.P. Morgan Senior Secured Mortgage Repaid in Full
Primary | Primary | Location | ABR ( | Gross | Square | NLOP |
Caremark RX, | Health Care | 183,000 | Included | |||
Vacant (formerly | N/A | $-- | 227,666 | Included | ||
Charter | Cable & | Bridgeton, | 78,080 | Included | ||
Merative L.P. | IT Consulting & | Hartland, | 81,082 | |||
Cofinity, Inc./ | Multi-line | Southfield, | 94,453 | Included | ||
Total | 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
Office property sales during the fourth quarter brought total gross proceeds from dispositions completed during 2024 to approximately
As of December 31, 2024, NLOP owned 39 office properties, comprising 37 properties in the
** 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
Institutional Investors:
1-212-492-1140
institutionalir@nloproperties.com
Individual Investors:
1-844-NLO REIT (656-7348)
ir@nloproperties.com
Press Contact:
Anna
1-212-492-1166
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SOURCE Net Lease Office Properties
FAQ
How much did NLOP receive from the sale of five office properties in late 2024?
What was the total value of NLOP's property dispositions in 2024?
What is the current size of NLOP's property portfolio as of December 2024?
How did NLOP use the proceeds from the recent property sales?
What was the cap rate for NLOP's occupied property sales in 2024?
