W.P. Carey Completes $40M Industrial Sale-Leaseback
The tenant, Weber-Stephen Products LLC, will continue its US-based product manufacturing strategy at the 622,000-square-foot, Chicago manufacturing facility.
CHIGACO, IL – W.P. Carey Inc. has completed a $40 million sale-leaseback of a 622,000-square-foot, light manufacturing facility near Chicago’s O’Hare International Airport.
The facility is currently triple-net leased, on a 15-year term with fixed annual rent escalations, to the global manufacturer and distributor of barbecue grills and accessories, Weber-Stephen Products LLC.
Located near Weber-Stephen’s global distribution center, the facility serves as the tenant’s primary North American manufacturing footprint.
The tenant has executed more than $28 million in capital investments within the facility, since 2014.
“In today’s market, more companies are turning to their real estate assets as a source of growth and liquidity,” says Andrés Dallal, executive director of investments for W. P. Carey. “W. P. Carey has been helping companies unlock the value of their real estate for nearly 50 years and through all market cycles. We are thrilled to welcome Weber-Stephen as our newest tenant, and we look forward to being an ongoing capital partner for them in the future as they continue to grow their business.”
“This sale-leaseback with W. P. Carey allows us to monetize our commercial real estate holdings to further invest in our US strategic growth plans,” states Bill Horton, chief financial office of Weber-Stephen. “We look forward to a long-term partnership with W. P. Carey as we continue to manufacture our products in our Chicago-based facility for the foreseeable future.”