WP Carey Completes $312M U-Haul Transaction

NEW YORK CITY-Just last week, WP Carey & Co. LLC reported a “sluggish” start in first-quarter results, but president and co-CEO Gordon F. DuGan didn’t seem overly concerned and even made reference to this deal, which is the largest in the investment firm’s 30-year history. “The pipeline looks strong,” he predicted, noting that the firm had disclosed in its 10K an agreement to make a $300-million investment.

That agreement is, in fact, a $312-million-lease transaction involving 78 U-Haul retail self-storage and truck rental facilities totaling approximately four million sf. The properties, located in 69 cities in 24 states, were acquired on behalf of Corporate Property Associates 14 Inc., Corporate Property Associates 15 Inc. and Corporate Property Associates 16-Global Inc.–members of the WP Carey Group of income generating, publicly held non-traded REITS.

Under the terms of the two separate bond-type net lease agreements, the self-storage facilities will be leased for an initial term of 20 year and can then be renewed for two 10-year periods. The truck rental facilities will be leased for an initial term of 10 years.