DAYTON, OH—W. P. Carey Inc. has just completed a $21 million sale-leaseback acquisition of a new 356,000-square-foot manufacturing facility in Lewisburg, OH, a suburb of Dayton. Pratt Industries Inc. leases the newly-constructed facility on a long-term basis, making the property a perfect fit for the New York-based REIT.
Pratt, a corrugated packaging company with about 4,400 employees in more than 20 states, invested about $35 million in the plant, which sits close to many of its key customers and will get all of its paper from a new state-of-the-art paper plant being developed in Valparaiso, IN. The company sells container board, recycled paper, displays and other packaging products. Company officials say Pratt operates as the only 100% recycled paper and packaging company in the US.
“This sale-leaseback transaction supports our current growth strategy and is enabling us to unlock capital from a core asset that we can redeploy in our operations,” says John Simcoe, division president of Pratt Properties. Pratt was represented in the transaction by JLL.
The transaction is “consistent with W. P. Carey's strategy of investing in long-term, single tenant assets that are critical to a tenant's business,” says WPC executive director Kathleen Barthmaier. “Given the long-term lease, the criticality of the asset and Pratt's additional capital investment in the equipment housed in the facility, we are pleased to add this asset to our portfolio.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
