W.P. Carey Completes $44M Industrial Sale-Leaseback
The REIT purchased two Midwest facilities, which are currently long-term net leased to a leading food manufacturer tenant.
NEW YORK – W.P. Carey Inc. has executed a $44 million sale-leaseback of two industrial properties, totaling more than 350,000 square feet in the Midwest.
The state-of-the-art food manufacturing facilities are currently master leased by a leading food manufacturer, on a triple-net basis for 25 years with fixed annual rent escalations.
The established US food manufacturer tenant provides both contract manufacturing and private label solutions to more than 130 customers.
The tenant’s entire manufacturing footprint is located within the two facilities.
As the tenant’s various product lines and offerings have consistently grown throughout numerous cycles, the food manufacturer has continued to invest in the facilities in order to improve operations and support increased demand. Most recently, the tenant completed a more than $40 million expansion at one of the facilities; adding more than 100,000 square feet, as well as related equipment.
“In today’s challenging economic environment, sale-leasebacks provide growing companies with a highly efficient capital solution,” states Andrés Dallal, W.P. Carey executive director of investments. “By selling these properties to W. P. Carey, our newest tenant was able to secure additional capital for reinvestment into its core business. Our experience and ample liquidity enabled us to structure a deal that met the needs of all parties. We look forward to building on this relationship and continuing our partnership over the long-term.”
“W. P. Carey has consistently been a reliable partner for us, so when this sale-leaseback opportunity emerged with a high-quality tenant, we immediately knew they would be the ideal investor,” Andrew Sandquist, vice chairman of Newmark Knight Frank. “They had the capital and experience needed to get this deal done quickly and efficiently while meeting the needs of my client.”