W.P. Carey Invests $149M in Industrial Facilities

NEW YORK – W.P. Carey Inc. has made three investments totaling $149 million and spanning 1.5 million square feet.

The investments encompass operationally-critical properties, which are triple-net leased to tenants, with a weighted-average lease term of 24 years.

The recent transactions bring W.P. Carey’s year-to-date investment volume to $203 million; following the completion of two capital investment projects totaling $54 million.

The three investments include a $75 million sale-leaseback of two packaging, production and distribution facilities, which are net-leased to a vertically-integrated grower-packer-shipper of seasonal, high-value summer fruit. The facilities, which include cold storage, are located near the tenant’s 20,000 acres of farmland in California’s Central Valley. The mission-critical facilities total more than one million square feet and serve as the majority of the tenant’s storage, processing and distribution operations. The tenant has made significant investments in the facilities, which are triple-net leased under a master lease for a 25-year term, with fixed annual rent increases.

The second of the three investments encompasses the $55 million acquisition of seven auto dealerships, a centralized vehicle conditioning center and two office facilities, totaling 170,000 square feet. The properties are net-leased to the regional used-vehicle retailer, Auto Lenders. The facilities represent Auto Lenders’ entire operating footprint, including dealerships, servicing centers and headquarters for each of its business segments. The properties, located in New Jersey and Pennsylvania, are subject to a newly negotiated, triple-net master lease with a 25-year term and fixed annual rent increases.

The final of the investments encompasses the $19 million sale-leaseback of two US distribution facilities, which total 296,300 square feet and are net-leased to a leading plastics distributor in North America and Europe. The tenant distributes its products in more than 60 countries worldwide to more than 10,000 customers in diverse markets, including automotive, healthcare, packaging, consumer, electronics and general industrial clients. The facilities are triple-net leased for a 20-year term, with fixed annual rent increases.

“The investments announced today show continued momentum in our deal closings and reflect the enduring demand from companies for long-term net lease financing,” states Gino Sabatini, W. P. Carey’s head of investments. “Our reputation as a trusted and reliable capital partner and ability to close all-equity were critical in securing these accretive transactions and enabled us to add a number of high-quality assets to our portfolio. W. P. Carey has been a steady source of long-term capital for companies looking to unlock the value of their real estate, so we are pleased to establish a relationship with our newest tenants to help them achieve their business objectives.”