The facility is located within a building that also houses a bakery, which was also sold by Schwan to Flowers Foods. WP Carey and Flowers Foods hold condominium interests in their respective portions of the building. WP Carey is leasing separate freezer sections of its cold storage space to both Schwan and Flowers under individual, triple-net long-term leases. The total square footage of the building, and the square footage for the Schwan and Flowers leases, was not disclosed.

WP Carey executive director Jason Fox tells GlobeSt.com that the strength of the tenants and the condition of the facility were among reasons the property was attractive for acquisition. Founded in 1952, the Schwan Food Co. manufactures frozen pizzas and frozen bakery dessert products. Among brands are Tony's, Red Baron and Freschetta pizzas, and Mrs. Smith's pies. Flowers produces and markets bakery foods, with brands including Nature's Own, Whitewheat, Cobblestone Mill, ButterKrust, Mary Jane, Mrs. Freshley's and Blue Bird. "We have two strong, investment-grade tenants in the facility," Fox says. "This is a state-of-the art facility with 90-foot ceilings and fully automated picking and conveyer systems."

The building is in excellent condition so there is no immediate need to make capital improvements, he adds.