MINNEAPOLIS—CPA®:18 – Global, a non-traded REIT affiliate of W. P. Carey Inc., a New York-based REIT, has just purchased from Liberty Property Trust a 191,000-square-foot office and R&D facility in suburban Plymouth for about $43 million. The facility is leased to Alliant Techsystems Inc. for a period of about 10 years and is just the latest big purchase by W.P. Carey or its affiliates of top industrial product net-leased to high credit companies.
Earlier this year, GlobeSt.com reported, for example, that CPA®:18 – Global completed an $85 million acquisition of the giant Dart Container/Solo Cup National Distribution Center located in suburban Chicago. At 1,552,475-square feet, it was the largest Chicago-area transaction involving corporate distribution space since early 2006.
Properties acquired by W.P. Carey typically are the most modern, up-to-date facilities with long-term leases to companies that consider the assets critical to their operations. The ATK building is no exception.
An aerospace, defense and outdoor sports and recreation company, ATK has operations in 21 states and overseas. Since moving into the building in 2001, ATK has made substantial investments in it to meet specific criteria for testing and housing specialized labs and equipment. The company has placed the headquarters for its armament systems division here, as well as its test laboratories. Furthermore, the company has attained a BB rating with a stable outlook from Standard & Poor's and a Ba2 with a stable outlook from Moody's.
"This transaction with ATK allowed us to provide liquidity to an institutional investor while adding a critical asset leased to a credit-rated company to CPA®:18 – Global's portfolio,” says Gino Sabatini, W. P. Carey managing director and co-head of global investments. “We believe that the acquisition of this net-leased asset adds accretive current yield and long term appreciation potential to the CPA®:18 – Global portfolio."
In addition, "the asset is located in what is recognized as the healthiest submarket in the Twin Cities—an area consisting of 25.5-million-square-feet of office space and a reported 7.2% vacancy rate. It is also home to many large corporations in the Minneapolis/St. Paul metro area and within the top ten largest communities in Minnesota."
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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.
