LXP in PHX
Industrial focused LXP Industrial (NYSE: LXP) announced the purchase of a 37-acre infill redevelopment site in the South Airport submarket of Phoenix, AZ for $103 million.
The property and its existing 600,000 square foot Class A office campus (plus two parking structures) are currently subject to a triple net lease with Phoenix Education Partners (NYSE: PXED) through March 2031 (annual cash rent of $16.1 million with 2.0% annual rental increases).
LXP intends to redevelop the property into approximately 400,000 to 450,000 square feet of industrial facilities upon lease expiration.
Based on this investment activity along with additional leasing execution, LXP increased its 2026 Adjusted Company FFO guidance to a new range of $3.30 to $3.40 from $3.22 to $3.37 per diluted common share.
Deal sheet
JLL Capital Markets announced the sale of a six-property FedEx industrial portfolio for $300 million. The properties total 1.6 million building square feet across five Southeast states, were built from 2022-23, and range from ~250,000-340,000 sq. ft. each. JLL represented the sellers, PGIM and Miramar Capital, in the transaction. The buyer was not disclosed.
Four Corners Property Trust (NYSE: FCPT) announced a definitive agreement to acquire a portfolio of 102 Mission Pet Health Veterinary properties for up to $268 million. The properties hold a weighted average lease term remaining of 10 years (nearly all assets held in two master leases) with blended annual rental escalations above 2.0% per annum. The deal priced at a ~6.5% cap rate on forward NOI. Mission Pet Health will become FCPT's 3rd largest tenant at ~6% of ABR.
Separately, FCPT closed on the acquisition of 14 Sun Auto Tire & Service properties across Missouri (8), Arkansas (4), and Illinois (2) for $26.0 million. The stores are corporate operated under long-term, triple net leases. Cap rate was not disclosed.
MAG Capital Partners has completed the sale/leaseback acquisition of two temperature-controlled properties from customized fresh food solutions distributor FreshEdge in Indiana. The 13.1-acre Indianapolis headquarters facility at 4501 Massachusetts Avenue features 23’-34’ clear height, 39 dock doors and one drive-in door while the 5930 West 82nd Street, a 28,800-square-foot warehouse property sits on 3.4-acres with 21' clear height and four drive-in doors.
WilmingtonBiz reported NETSTREIT (NYSE: NTST) has acquired a condominium interest in the 29,000 sq. ft. Lidl grocery store in Wilmington, NC for $7.5 million.
Brennan Investment Group announced two sale/leaseback deals. First the sale/leaseback acquisition of a 55,000 square foot Class A industrial building in Bolingbrook, IL. Located at 6 Territorial Ct, the property is tenanted by Impact Networking, LLC. The property features modern industrial specifications, including 25-foot clear heights, six dock-high doors, two drive-in doors, heavy power, and excess land that can be used as auto or trailer parking. Second, the sale/leaseback acquisition of a 202,000 square foot industrial facility in Vonore, TN. The 42-acre property is one of two seating manufacturing plants operated by global creator of commercial vehicle systems Commercial Vehicle Group (NASDAQ: CVGI) and is now subject to a 20-year absolute net lease.
ArcTrust Private Capital announced the acquisition of a 7-property, 51,000 square foot portfolio comprised of two Pinnacle Bank locations, three CVS Pharmacy locations and two Napa Auto Parts locations across six states. The portfolio will be offered to accredited investors as a Delaware statutory trust (DST): ArcTrust Exchange II DST. The portfolio features a weighted average remaining lease term of roughly 13.6 years, and each property is leased on an absolute triple-net basis.
The house always…sells?
Caesar’s Entertainment (NASDAQ: CZR) announced a definitive agreement to be acquired by Fertitta Entertainment in an all-cash take private transaction totaling $17.6 billion. Caesars shareholders will receive $31.00/share and Fertitta will assume nearly $12 billion of Caesars’ outstanding debt. The company provides gaming, entertainment, and hospitality amenities primarily via operations under the brand names of Caesars®, Harrah’s®, Horseshoe®, and Eldorado®. Caesars is the top tenant concentration at VICI Properties (NYSE: VICI), generating 38% of annualized contractual rental income (including Caesar’s Palace and Harrah’s on the Las Vegas Strip along with numerous non-Vegas assets).
Separately, media mogul Barry Diller's People Inc. (NASDAQ: PPLI) offered to acquire the remaining shares of MGM Resorts (NYSE: MGM) it does not yet own (currently holds 26.1%) for $48.30/share in a deal that would move MGM from publicly listed to a private company. According to the public letter, “We expect that People Incorporated would own just over a majority of the post-closing equity in MGM, and would have control over the business, with minority ownership by other investors (who may include some current MGM shareholders). We expect MGM's current management team would continue to lead the business...” MGM is #2 the top tenant concentration at VICI Properties (NYSE: VICI), generating 32% of annualized contractual rental income (including Las Vegas Strip assets like MGM Grand, Mandalay Bay, Luxor, Excalibur, Park MGM, New York-New York).
Halfway to $4 billion+
Preliminary June equity capital raise for net lease focused non-traded REITs shows continued momentum with $364 million in aggregate before mid-month feeder reporting for Blue Owl and North Haven. The run-rate for the first half of the year projects a full year 2026 total to exceed $4 billion.
Debt deal
Essential Properties Realty Trust (NYSE: EPRT) announced the pricing of $400 million in senior unsecured notes due 2036. The offering is expected to settle on July 15th with a 5.62% yield to maturity.
-Sean Hostert