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High-Quality Distribution and Manufacturing Facilities Leased to Industry-Leading Tenants Bring Year-to-Date Investment Volume to $600 Million
NEW YORK, Nov. 2, 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 the completion of two investments in October 2020 totaling approximately $85 million and over 1.2 million square feet, bringing total year-to-date investment volume to approximately $600 million. The investments comprise four operationally-critical industrial properties triple-net leased to industry-leading tenants with a weighted average lease term of 20 years.
The investments include:
$51 million sale-leaseback of three manufacturing facilities and adjacent laydown-yards comprising 994,000 square feet, net leased to a leading full-service carpenter contractors, material supplier and housing component manufacturer in the U.S. The tenant has been in operation for nearly 65 years and has continued to demonstrate strong performance from its diverse product offerings and long-standing customer relationships, including most of the top national builders. The facilities represent the tenant's entire manufacturing operations and are strategically located in markets with strong underlying housing growth dynamics and rail access in Florida, Illinois and North Carolina. The assets are triple-net leased under a 20-year master lease with fixed annual rent escalations.
$34 million sale-leaseback of a 208,000-square-foot refrigerated food processing and distribution facility, net leased to the leading distributor of specialty produce in the Midwest. Since acquiring the facility in 2018, the tenant has invested approximately $20 million into the asset which serves as the company's sole location. The facility contains 60 percent cooler and three percent freezer space and is designed with five different climate zones to accommodate various temperature requirements for produce. As demand for online grocery continues to rise, refrigerated facilities such as these with access to key transportation routes and proximity to end consumers continue to be positioned to perform well. The facility is located near the Minneapolis-St. Paul metropolitan area in Minnesota and is triple-net leased for a term of 20 years with fixed annual rent escalations.
Zachary Pasanen, Executive Director, Investments, W. P. Carey said: "As companies continue to seek alternative sources of capital to support their strategic growth plans now and beyond COVID-19, sale-leasebacks remain a cost-effective, long-term solution for those that own their corporate real estate. In our latest investments, we were able to execute on a tight timeframe and provide certainty of close to meet the needs of both companies due to a combination of our longstanding presence in the sale-leaseback market, local market expertise and ample liquidity. We are delighted to welcome our newest tenants to our growing portfolio and look forward to deepening our partnership with them."
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 1,215 net lease properties covering approximately 142 million square feet as of September 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 may contain forward-looking statements within the meaning of U.S. Federal securities laws. 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.