W. P. Carey Announces $45 Million of Investments by CPA:18 - Global
Four transactions added to diversified portfolio
Nov 25, 2014
NEW YORK, Nov. 25, 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 it has completed four acquisitions on behalf of CPA®:18 – Global, one of its managed non-traded REITs. The total cost of the four acquisitions, which include properties located in Minnesota, Michigan, Georgia and Texas, was approximately $45 million.
Midcontinent Independent System Operator, Inc. (MISO) – Office and Operations Center Facility
Totaling 60,000 square feet, the property includes a headquarters and an operations/control center located outside Minneapolis, Minnesota. The facility is leased to MISO and has a remaining lease term of approximately 11 years. MISO is a not-for-profit, member-based organization that administers wholesale electricity markets for its forty nine transmission owners and ninety six non-transmission owners across fifteen U.S. states and the Canadian province of Manitoba.
USF Holland Inc. – Build-to-Suit Truck Terminal
The 59,000 square-foot terminal, situated on 22 acres in Grand Rapids, Michigan, will include a 40,420 square-foot dock building, a 6,500 square-foot office building and a 12,000 square-foot shop building. Upon completion, the facility will be leased to USF Holland for an initial term of 15 years. Founded in 1929 in Holland, Michigan, USF Holland has established a comprehensive next-day trucking service network and annually records one of the lowest freight loss/damage claim ratios in the industry. Originally organized to serve the central United States, USF Holland has expanded into the Southeast and Midwest.
Cooper Tire & Rubber Company – Warehouse/Distribution Facility
The 653,000 square-foot facility, located in Albany, Georgia, is leased to Cooper Tire & Rubber Company (Cooper Tire) for a remaining period of approximately 10 years. As Cooper Tire's southeastern U.S. distribution center, the location provides critical access to sources of supply and customers. Cooper Tire is the fourth largest tire manufacturer and marketer of replacement tires in North America and focuses on the manufacture and sale of passenger and light and medium truck replacement tires. Based in Findlay, Ohio, Cooper Tire and its family of companies currently operate nine manufacturing facilities and 40 distribution centers in 11 countries, employing more than 13,000 people worldwide.
Barnsco, Inc. – Five Industrial Facilities
The five industrial facilities, totaling 128,000 square feet, are located in Dallas and Fort Worth, Texas and are leased to Barnsco for an initial term of 15 years. The assets are industrial facilities used for the storage, distribution and manufacturing/assembly of construction components. Barnsco is an integrated distributor and service provider to the concrete industry in its service area and sells products such as supplies, tools and rental equipment, as well as services such as rebar shaping/cutting, specialty manufacture of wire items used in concrete installation and the repair and servicing of commercial vehicles and equipment. Barnsco is a wholly owned operating subsidiary of Kodiak Building Partners and is based in Dallas, Texas.
W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini, stated: "The closing of these four transactions represents W. P. Carey's ability to source, structure and execute on single-tenant transactions for diverse types of assets leased to a variety of tenants across multiple industries. In addition, they demonstrate our ability to leverage our credit and real estate analysis capabilities to underwrite build-to-suit transactions and not-for-profit enterprises, as well as underwriting more traditional corporate net-lease transactions. All four investments include assets critical to the operations of each tenant and are supported by established operating entities. We believe that well-structured investments in diverse sectors support our strategy of generating cash flow and providing income to CPA®:18 – Global investors."
W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Sabatini are examples of forward looking statements. A number of factors could cause CPA®:18 – Global's actual results, performance or achievements 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; and risks related to CPA®:18 – Global's offering of shares. For further information on factors that could impact CPA®:18 – Global, reference is made to CPA®:18 – Global's filings with the Securities and Exchange Commission.
W. P. Carey Inc.
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