All of the properties will be leased under 20-year bond-type net leases with two, 10-year renewal options. TruServ was advised by Chicago-based real estate bank Patriot Capital Advisors LLC.
The facilities, totaling more than 3.6 million square feet, are located in Corsicana, TX, Fogelsville, PA, Jonesboro, GA, Kansas City, MO, Kingman, AZ, Springfield, OR and Woodland, CA. W.P. Carey purchased the assets on behalf of Corporate Property Associates 15 Inc., the company's newest publicly held non-traded REIT, and affiliate funds CPA: 12 and CPA: 14. The properties will be co-owned by the three entities with CPA: 15 retaining a 50% stake, CPA: 14 keeping 35% and the remaining 15% going to CPA: 12.
"This sale-leaseback financing option allowed TruServ to monetize the value of some of its real estate assets to restructure a portion of its senior debt, improving profitability as well as the balance sheet," says TruServ vice president and treasurer Barbara L. Wagner.
"As companies continue to seek to diversify their sources of capital through alternative forms of financing, the sale-leaseback option will remain popular as a means to pay down corporate debt," notes W.P. Carey director Benjamin P. Harris. "These facilities, which are critical to TruServ's operations, will add further diversification to the net-leased portfolios of our managed REITs."
TruServ supplies roughly 6,800 retail outlets worldwide under the names True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and Induserve Supply. Stores average 6,000 sf and are located in urban, suburban and rural markets throughout the country.
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