Mission-Critical Property in Prime Location Net Leased to Market-Leading Tenant
NEW YORK, Oct. 5, 2020 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, today announced a $40 million sale-leaseback of a 622,000-square-foot light manufacturing facility located in proximity to Chicago's O'Hare International Airport. The facility is net leased on a 15-year term to Weber-Stephen Products LLC ("Weber-Stephen"), the global leader in barbecue grills and accessories.
Global market-leading tenant: With more than 65 years in the grilling industry, Weber-Stephen is the world's premiere manufacturer and distributor of gas and charcoal grills and related accessories. The tenant sells its products through more than 10,000 retailers in the U.S. and thousands more worldwide, in addition to having a strong online presence.
Mission-critical manufacturing facility: The facility comprises the tenant's primary North American manufacturing footprint. Since 2014, the tenant has made capital investments totaling over $28 million in the facility, underscoring the importance of the asset to its operations and its continued long-term US-based product manufacturing strategy.
Strategic location: The manufacturing facility is strategically located near Weber-Stephen's global distribution center and benefits from proximity to the I-90 freeway and O'Hare International Airport.
Long-term lease with built-in rent escalations: The asset is triple-net leased for 15 years with fixed annual rent escalations.
Andrés Dallal, Executive Director of Investments, W. P. Carey said: "In today's market, more companies are turning to their real estate assets as a source of growth and liquidity. 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."
Bill Horton, Chief Financial Officer, Weber-Stephen said: "This sale-leaseback with W. P. Carey allows us to monetize our commercial real estate holdings to further invest in our U.S. strategic growth plans. 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."
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,216 net lease properties covering approximately 142 million square feet as of June 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
This press release contains forward-looking statements within the meaning of U.S. Federal securities laws. The comments of Mr. Dallal are examples of forward looking statements. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate, including the continuing impact of the COVID-19 pandemic; the supply of and demand for commercial properties; interest rate levels; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact W. P. Carey, reference is made to its filings with the U.S. Securities and Exchange Commission.
W. P. Carey Inc.
Ross & Lawrence
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SOURCE W. P. Carey Inc.