Net Lease REIT W.P. Carey Beefs Up Industrial Acquisitions
Fierce competition for darling industrial acquisitions led W.P. Carey to streamline deal production to bulk-up industrial assets and reinforce investor partnerships.
NEW YORK CITY — W.P. Carey Inc., a global net-lease REIT, has acquired three industrial properties totaled at $111 million amid fierce competition for the assets. Droves of investors are fiercely competing for darling industrial acquisitions, which has led W.P. Carey to not only streamline deal production to bulk-up on industrial assets but reinforce investor partnerships through the accretive acquisitions, said Andrés Dallal, executive director of investments at the firm, in a prepared statement.
Aggregate industrial investments have served the benefit of W.P. Carey, allowing it to unlock real estate value for clients and shareholders long term because of industrial’s favor in the market. The top-ranked company is one of the largest net-lease REITs, with an estimated market value of $20 billion. Although the company is large, it maintains a nimble approach, according to Dallal.
“Industrial continues to be one of the most sought-after sectors where we continue to successfully source deals that meet our investment criteria,” he says. ”Our established reputation and ability to quickly structure and close deals with multiple parties continue to position us as the preferred long-term partner.”
W.P. Carey’s recent industrial transactions include a $30 million sale-leaseback of three industrial facilities triple-net leased to Wendorff Bros. Co. Inc. under a 25-year master lease with fixed annual rent escalations. The properties total 619,000 square feet and are located in Wisconsin, comprising the majority of Wendorff’s operations.
Second is the $15 million sale-leaseback of two industrial facilities in Ontario, Canada, totaling 285,000 square feet and net-leased to Trillium Health Care Products Inc. The properties, located on the US and Canada border, are leased on a triple-net basis in USD under a master lease for 22 years with fixed annual rent escalations.
Finally, W.P. Carey will acquire a to-be-constructed development for a class-A Tennessee distribution facility, totaling 614,000 square feet for $66 million.
Capital allocation to industrial is reserved for high-quality accretive acquisitions with strong tenants, said Dallal. The same is true for W.P. Carey’s overall portfolio, which includes 1,198 net lease properties, covering approximately 137 million square feet.