City Office REIT has closed its acquisition of Lake Vista Pointe in Dallas, Texas for a purchase price of USD28.4 million.
Lake Vista Pointe is a 163,000 square foot office property in the growing Lewisville, Texas submarket.
The property was constructed in 2007 and is fully leased on a triple net basis to Ally Financial through 2021.
The Lake Vista Pointe acquisition is anticipated to generate an initial full-year cash net operating income yield of approximately 7.8 per cent based on the purchase price with contractual annual rent escalations. The acquisition was financed with an USD18.5 million mortgage that has been fixed at a 4.28 per cent interest rate for 10 years.