NEW YORK CITY—A six-property sale-leaseback agreement between the W. P. Carey Inc.-sponsored CPA:17 – Global and Bon-Ton Stores marks the latest in a long series of transactions between WPC and the York, PA-based retailer. Valued at $88 million, including acquisition fees, the sale will enable BONT to repay one of two mortgage loan facilities due in April 2016.

“Bon-Ton has built a strong track record of tenancy with W. P. Carey since our first transaction 18 years ago,” says Gino Sabatini, managing director of the net lease REIT. “We are delighted to extend our long relationship with the company by providing them with capital to refinance these properties. Given the criticality of these retail stores to Bon-Ton's ongoing operations, an attractive yield on the investment and the inclusion of annual CPI adjustments, we believe the investment is a valuable addition to the CPA:17 – Global portfolio.” Launched in 2007, CPA: 17 – Global is one of a series of non-traded REITs which WPC has sponsored.

At BONT, president and CEO Kathryn Bufano says the sale-leaseback “allows us to address the maturity of one of our mortgage facilities and further enhances our financial flexibility through the value of the remaining properties no longer encumbered by the mortgage facility. She adds that the company is “actively pursuing refinancing options for the second of our two mortgage facilities, and will share updates as appropriate.” Each mortgage loan facility has principal outstanding of approximately $105 million and consists of 12 properties

Three of the properties in the CPA:17 – Global dealare located in Milwaukee, where BONT also has corporate offices, with the remaining three located in Green Bay, WI; Fargo, ND; and Joliet, IL. The facilities are leased to a BONT affiliate for 20 years. BONT operates 270 stores across the Northeast, Midwest and Upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates.