W. P. Carey's $23 Million Acquisition of Avnet Facility Adds Core Real Estate Asset to Managed Portfolio
Property leased to Fortune 500 company located at hub of Arizona's high tech community
Jan 6, 2014
NEW YORK, Jan. 6, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE:WPC), a real estate investment trust ("REIT") specializing in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that CPA®:17 - Global, one of its publicly-held non-traded REIT affiliates, has acquired an office building in Tempe, Arizona leased to Avnet, Inc. The facility serves as the global headquarters of Avnet's Technology Solutions group.
- Triple-net lease with high quality credit tenant: The property is leased for ten years to a BBB- Standard & Poor's rated tenant. Avnet, Inc. (NYSE:AVT), a Fortune 500 company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers globally.
- Strategic location: The 132,070 square foot property is located on a nine acre site within the Arizona State University Research Park in Tempe, the best performing major submarket of Phoenix. With excellent freeway exposure along the Loop 101, the site provides parking for more than 660 vehicles and room for future expansion of the facility.
- High quality critical asset: The facility serves as the group corporate headquarters for Avnet Technology Solutions, one of two operating groups of Avnet, Inc. Constructed in 2000 as a build-to-suit for Avnet, the company has made several capital improvements to the property over the years. Most recently, Avnet has sought permission to install solar panels on the roof and covered parking to improve energy efficiency and continue its commitment to operating a "greener" facility.
- Purchase price: Approximately $23 million.
W. P. Carey Executive Director, Kathleen Barthmaier: "The facility is a high quality, critical asset leased to a Fortune 500 company located in one of the most desirable office parks in Tempe. The acquisition allowed us to provide liquidity to the current owners while adding a solid income generating property to CPA®:17 - Global's portfolio."
Ms. Barthmaier added, "The Avnet facility is strategically located at the center of Arizona's high tech community in the ASU Research Park off of the Price Boulevard/Loop 101 Freeway. Proximate to Arizona State University, downtown Phoenix and Sky Harbor International Airport, the location has unparalleled access to the fastest growing portion of Metropolitan Phoenix."
Morgan Olsen, President of the Arizona State University Research Park Board of Directors and CFO of Arizona State University: "We are delighted that W. P. Carey has purchased a property in the ASU Research Park. This acquisition validates the institutional quality of the facilities and tenants within the Research Park, currently home to 48 companies which provide over 4,500 high-quality jobs."
Amy Hillman, Dean of the W. P. Carey School of Business at Arizona State University: "W. P. Carey's acquisition of the Avnet facility serves to strengthen our relationship with this outstanding corporate partner. We are thrilled to have W. P. Carey join the roster of investors in the Research Park and look forward to many more opportunities for collaboration."
W. P. Carey Inc.
W. P. Carey Inc. is a publicly traded REIT (NYSE: WPC) that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling more than $15 billion. The largest owner/manager of net lease assets, WPC's corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows that have enabled WPC to deliver consistent and rising dividend income to investors for nearly four decades. www.wpcarey.com
This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Ms. Barthmaier are examples of forward looking statements. A number of factors could cause the CPA®:17 - Global's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact CPA®:17 - Global, reference is made to CPA®:17 - Global's filings with the Securities and Exchange Commission.
W. P. Carey Inc.
Ross & Lawrence
SOURCE W. P. Carey Inc.