W.P. Carey Invests $137M in Industrial Assets
The firm has completed three industrial investments, encompassing five facilities and two million square feet.
NEW YORK – W.P. Carey has completed three industrial investments totaling $137 million and two million square feet.
The acquisitions comprise five operationally-critical properties that are net-leased to industry-leading tenants.
The transactions bring W.P. Carey’s year-to-date investment volume to $900 million, with a weighted average lease term of 22 years.
The first of the three investments comprises the $49 million sale-leaseback of a 703,000-square-foot, class A logistics facility in Alabama. The cross-docked facility, built in 2005, features up to 40-foot clear heights on a site that allows for future expansion. Located along I-85, the facility is triple-net-leased for 20 years, with fixed annual rent escalations, to the sewing and fabrics company, JOANN. The facility supplies more than one-third of JOANN’s’ nearly 900 retail locations across 49 states nationwide. JOANN has made substantial investments in equipment for the facility.
W.P. Carey’s second transaction consists of the $45 million sale-leaseback of a 779,000-square-foot distribution facility in New York. The recently-completed facility is triple-net-leased for 26 years, with fixed rent escalations, to Orgill, the largest independent hardware distributor. Serving as the tenant’s primary distribution center for the Northeast, the facility was constructed to meet growing sales and provide faster service to the region. Located along the NY-49 highway, the facility includes extensive equipment owned by Orgill, including racking systems with automated sorting capabilities.
The final transaction encompasses the $43 million sale-leaseback of a three-property logistics portfolio, totaling 497,000 square feet in the logistics markets of Chicago and Toronto. The properties are net-leased to a North American manufacturer of products for home living, industrial and recreational uses. The properties serves as the tenant company’s primary distribution centers as well as its headquarters. The portfolio is triple-net-leased on two USD-denominated master leases by country for 15 years, with fixed annual rent escalations.
“These industrial investments demonstrate our ability to differentiate ourselves in the market as a trusted and reliable capital partner with the experience needed to efficiently execute on high-quality deals,” says Gino Sabatini, head of investments for W. P. Carey. “We are excited to have worked with both new and existing tenants on these sale-leasebacks, enabling them to convert their real estate into working capital to help them achieve their business objectives.”