DAYTON, OH—W. P. Carey Inc. has just completeda $21 million sale-leaseback acquisition of a new356,000-square-foot manufacturing facility in Lewisburg, OH, asuburb of Dayton. Pratt Industries Inc. leases thenewly-constructed facility on a long-term basis, making theproperty a perfect fit for the New York-based REIT.

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Pratt, a corrugated packaging company with about 4,400 employeesin more than 20 states, invested about $35 million in the plant,which sits close to many of its key customers and will get all ofits paper from a new state-of-the-art paper plant being developedin Valparaiso, IN. The company sells container board, recycledpaper, displays and other packaging products. Company officials sayPratt operates as the only 100% recycled paper and packagingcompany in the US.

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“This sale-leaseback transaction supports our current growthstrategy and is enabling us to unlock capital from a core assetthat we can redeploy in our operations,” says JohnSimcoe, division president of Pratt Properties. Pratt wasrepresented in the transaction by JLL.

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The transaction is “consistent with W. P. Carey's strategy ofinvesting in long-term, single tenant assets that are critical to atenant's business,” says WPC executive director KathleenBarthmaier. “Given the long-term lease, the criticality ofthe asset and Pratt's additional capital investment in theequipment housed in the facility, we are pleased to add this assetto 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.