AUSTIN-Two of WP Carey Inc.'s non-traded REIT affiliates, CPA®:17 – Global and CPA®:18 – Global, have acquired the State Farm Operations Center from State Farm Mutual Automobile Insurance Co. In its first buy, a sale-leaseback transaction, the New York private REITs paid $110 million for the 448,898-square-foot facility.
The operations center is situated on 83.5 acres at 8900 Amberglen Blvd. in the 263-acre, master-planned Amber Oaks Corporate Center. This master-planned park is ten miles northwest of Austin's CBD.
State Farm has been in the facility since 1994. The agreement involved a 15-year initial term lease to State Farm.
“In addition to being a Class A office building with a prime location in one of the nation's top performing metro areas, the property is leased to State Farm, which is an AA credit rated tenant," says Gino Sabatini, WP Carey's managing director and co-head of Global Investments. "Given these characteristics, the asset is a strong addition to the portfolios of CPA®:17 – Global and CPA®:18 – Global, consistent with our strategy of generating stable cash flow and long-term value for investors.”
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