SAN ANTONIO--W. P. Carey Inc., a New York-based REIT that specializes in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net lease properties, has acquired a San Antonio office and data center facility on behalf of CPA^®:17 - Global, one of its managed non-traded REITs, for $22 million.

The 120,147-square-foot facility is located in far north-central San Antonio at 20800 Stone Oak Parkway, and is leased to New York-based iHeartCommunications Inc. for a period of 20 years.

“The iHeart transaction demonstrates how W. P. Carey distinguishes itself from other net lease investors through its ability to underwrite non-rated tenants and their real estate,” says Jason Fox, W. P. Carey's managing director and co-head of global investments, told GlobeSt.com. “In this case, our ability to understand and evaluate the strength of iHeart's business as well as the criticality of the asset to their operations allowed us to secure a valuable asset for the CPA:17 portfolio as well as provide attractive financing to the company.”

Previously known as Clear Channel Communications Inc., iHeart specializes in radio, digital, outdoor, mobile, social, live events, on-demand entertainment and information services for local communities.

The building, constructed in 2002 as a build-to-suit for Clear Channel, serves as the company's primary IT and finance service center.

“Given the valuable data center space and improvements to the building, we believe that we were able to acquire the facility at below replacement cost,” says Fox. “The terms of the triple-net lease provide for an attractive initial cap rate, as well as annual built-in rent increases. iHeartCommunications' position in the broadcast and outdoor advertising sector, and the highly critical real estate make for what we believe will be a long-term, income-generating investment for CPA^®:17 – Global's investors."

The St. Louis office of DTZ represented ownership in the sale.

Instant Insights /

San Antonio iHeart Facility Acquired for $22M

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