The sale-leaseback deal for Corporate Property Associates 14 Inc. allows Nexpak to remain as a tenant for 20 years at an undisclosed rent. Area brokers familiar with similar transactions, however, tell GlobeSt.com on condition of anonymity the bond-type net lease deal has an estimated value of at least $22 million based on a conservative rent of $5 per sf.
Palladium Equity Partners of New York is providing private equity funding for Carey in the deal.
"This sale-leaseback transaction will effectively unlock the full value of the underlying facility and provide Nexpak with the capital to pay down debt and fund other corporate initiatives," Edward V. LaPuma, Carey's executive director, says in a prepared statement.
He says, "We have found that when a tenant-client removes its real estate from its balance sheet, the company is then able to redeploy this much-needed capital to pay down debt or finance other corporate initiatives."
Nexpak was formed in August 1999 following the merger of four plastic, injection-molding companies--Atlanta Precision Molding, European Precision Molding, Joyce Molding and Alpha Enterprises' Media Packaging Division. Nexpak makes disc jewel boxes, video and DVD cases and other related media-packaging products at eight automated plants in the United States and The Netherlands.
Among Nexpak's customers are AOL Time Warner, Blockbuster Home Entertainment, Walt Disney Co., Dreamworks, Paramount Pictures, Sony Music entertainment, TDK Electronics, Universal Pictures and Home Video, and Wal-Mart.
Carey's affiliate, also known as CPA®:14, owns a portfolio of 66 properties that are net-leased to 44 tenants throughout the United States.
W.P. Carey & Co. calls itself the largest publicly trade limited liability company in the world and owns/manages 45 million sf. Besides Manhattan, the firm has offices in London and Paris.
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David Wilkening
David Wilkening began his long journalism career as a police reporter for Chicago-area newspapers. He became a writer-editor for major newspapers in Chicago, Washington, Detroit and Florida. He has been a business editor, political editor and travel editor for newspapers and magazines. He tried for a while to be a political operative but did better as an adjunct college professor teaching English and journalism. He is the author of several books, both ghost-written and under his own name. He is also a widely published freelance writer who currently lives in Orlando.
