CapLease Enters into $20 Million Build-to-Suit Transaction

CapLease, Inc. LSE announced today that it has entered into a build-to-suit arrangement to construct a state-of-the-art 311,730 square foot distribution warehouse in Ashland, Virginia outside of Richmond for Vitamin Shoppe Industries, Inc. The Company has entered into a 15 year net lease which will commence upon completion of construction. The Company has acquired the approximately 43 acre land site, and entered into a development agreement with a large Southeast based developer. Construction is expected to commence immediately and be completed during the early part of the second quarter of 2013. When complete, the Company's total investment is expected to be about $20 million and its average capitalization rate will be approximately 8% over the 15 year lease term.