NEW YORK—W. P. Carey and Extra Space Storage have entered into a net lease agreements for 36 self-storage properties owned by W. P. Carey. The deal essential converts W.P. Carey's operating assets into long-term triple-net leases.

The properties will be triple-net leased by Extra Space Storage for 25 years. The leases include termination rights for both companies on the 10- and 20-year anniversaries, based on certain performance metrics. Beginning on the three-year anniversary, W. P. Carey also has the right to terminate the leases in the event of a sale, with Extra Space Storage retaining the right of first offer to acquire the properties.

“The structure allows us to maintain our exposure to self-storage, an asset class we have invested in for over 15 years and know well,” says W.P. Carey CEO Jason Fox. “It also underscores self-storage as a potential source of additional net lease investment opportunities.”

The transaction includes a large majority of the self-storage properties that W. P. Carey acquired in its merger with CPA:17, representing approximately 90% of its total operating self-storage net operating income.

For Extra Storage Space, the deal add five more assets to its platform in the boroughs of New York City.

Instant Insights /

W.P. Carey, Extra Space Storage Enter into Net Lease Deal

Related Stories

Recommended For You