The facility is located within a building that also houses abakery, which was also sold by Schwan to Flowers Foods. WP Careyand Flowers Foods hold condominium interests in their respectiveportions of the building. WP Carey is leasing separate freezersections of its cold storage space to both Schwan and Flowers underindividual, triple-net long-term leases. The total square footageof the building, and the square footage for the Schwan and Flowersleases, was not disclosed.

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WP Carey executive director Jason Fox tells GlobeSt.com that thestrength of the tenants and the condition of the facility wereamong reasons the property was attractive for acquisition. Foundedin 1952, the Schwan Food Co. manufactures frozen pizzas and frozenbakery dessert products. Among brands are Tony's, Red Baron andFreschetta pizzas, and Mrs. Smith's pies. Flowers produces andmarkets bakery foods, with brands including Nature's Own,Whitewheat, Cobblestone Mill, ButterKrust, Mary Jane, Mrs.Freshley's and Blue Bird. "We have two strong, investment-gradetenants in the facility," Fox says. "This is a state-of-the artfacility with 90-foot ceilings and fully automated picking andconveyer systems."

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The building is in excellent condition so there is no immediateneed to make capital improvements, he adds.

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Fox describes WP Carey as opportunistic buyers, but says thecompany has completed a few hundred million dollars worth ofacquisitions in the cold storage facility sector in recent times."The food industry has grown tremendously over the past few decadesand Schwan and Flowers have been leaders in their respectivefields," Fox says.

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