ESCONDIDO, CA-Locally based NNN specialist Realty Income Corp.has agreed to acquire 2,000 acres of Diageo Chateau & Estatewineries in the Napa Valley for $269 million in a sale-leaseback.The properties are all under 20-year NNN leases with Diageo Chateau& Estate Wines that are guaranteed by Diageo Plc, one of theworld's largest purveyors of spirits, wine and beer, listed on theNew York and London stock exchanges.

The properties, located throughout the Napa Valley in NapaCounty, include vineyards that have been in production for between25 and 100 years, as well as the winery, production, retail andvisitor center buildings of both the Sterling Vineyards winery andthe Beaulieu Vineyards winery, with combined leasable space ofapproximately 400,000 square feet.

Realty Income expects to close the acquisition in the secondquarter, after which Diageo will become Realty Income’s secondlargest tenant, producing approximately 5.7% of the company’srevenue.