"A sale-leaseback transaction simply converts real estate into cash, which can then be more effectively used," states Lynn M. Wytas, treasurer of Gerber Scientific Inc. "Debt reduction continues to be our focus, and monetizing a capital asset helps us to achieve our goal of lowering the company's leverage."

Edward V. LaPuma, executive director of W. P. Carey tells GlobeSt.com, "W. P. Carey and its affiliate, CPA(R):14, target middle-market tenants and private companies with an eye toward providing creative financing solutions to meet their corporate real estate needs. When a company removes real estate from its balance sheet, it is then able to reallocate this much-needed capital to pay down debt, or finance other corporate initiatives."

He continues, "After careful credit analysis and working closely with Gerber Scientific management, we were able to tailor this transaction to meet Gerber's specific needs. The sale-leaseback arrangement of these properties will enhance CPA(R):14's already diverse portfolio and provide further stability." As of June 30, 2001, the trust's portfolio contained 73 properties net-leased to 45 tenants throughout the United States with total assets of more than $780 million.

LaPuma notes that as the economy continues to struggle, W.P. Carey is starting to see a significant increase in corporations seeking to sell their real estate assets as a means of raising capital.

However, he adds that some prospective sellers still have expectations of obtaining values that existed 18 months ago. Therefore, he charges that "there is a buyer/seller disconnect at the moment."

Since April, W.P. Carey has engaged in a number of large sale/leaseback deals, including a $22 million transaction with Gibson Guitar Inc. on four properties in Nashville, Illinois and Montana; a $13.6 million deal with Nexpak Corp. on its 221,374-sf manufacturing and distribution facility in Duluth, GA and a $37.7 million sale/leaseback transaction with Special Devices Inc. on two facilities in California and Arizona.