Boston-based Winthrop Realty Trust recently acquired 3.5 million shares of common stock in Lexington Realty Trust at a purchase price of $5.60 per share.

In addition, the seller of the shares has provided Winthrop with non-recourse financing equal to 50 percent of the purchase price, according to Winthrop Realty Trust. The financing has a term of three years.

The settlement of the purchase, which occurred in a privately negotiated transaction, is expected to occur on or about Oct. 30.

“It is our view that Lexington's shares have been significantly oversold by the market,” said Michael L. Ashner, chairman and chief executive officer of Winthrop. “The three-year non-recourse financing provided at a favorable rate, significantly enhances the potential returns on this investment. With the current instability in the real estate equity and debt markets, we anticipate an increase in the frequency of such opportunistic investments.”