NEW YORK CITY—W. P. Carey Inc. has made Tucson's biggest office acquisition based on square footage since 2008, the largest of a trio of net lease deals WPC made on behalf of its CPA:17 -– Global managed REIT. The 143,650-square-foot property at 3350 E. Hemisphere Loop in Tucson serves as the corporate headquarters for Raytheon's Missile Defense Systems division and traded to WPCX for $18.95 million, or $131 per square foot.
A Colliers International team of SVP Neil Glassmoyer, VP Tivon Moffitt and senior associate Peter Bauman served as brokers for both WPC and seller Summit Properties of Seattle. WPC acquired the 12-year-old class A office building for “well below replacement cost with a high-quality tenant in place,” Glassmoyer says.
Gino Sabatini, managing director and director of global investments at WPC, says the quality of the tenant, and “the criticality of the asset to their operations, made this an attractive investment” for his company. “The building's size, along with significant improvements made by the tenant, are key factors in meeting the tenant's unique requirements and consequently enhanced the investment value of the asset for us.”
Separately, WPC acquired a corporate headquarters/R&D facility in New Concord, OH and a manufacturing facility in Bluffton, IN for about $8 million. Totaling 127,764 square feet, both are leased to a subsidiary of the PendaForm Co. for a period of 20 years.
“Having completed an earlier transaction with PendaForm in 2012, we were pleased to again work with the owners and provide capital for the expansion of their business,” Sabatini says. “At the same time, as part of the current transaction, we were able to extend the lease term of the original transaction with them, thereby securing additional future cash flow for CPA:17 -- Global's investors.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
