W.P. Carey & Co., a New York-based real estate investment banking firm, is funding the project for Corporate Property Associates 14 Inc. (CPA: 14). Universal Technical Institute of Phoenix, AZ and NASCAR Technical Institute will jointly lease the property from CPA 14 on a 20-year, bond-type net lease, followed by two 10-year renewal options.
The aggregate value of the lease wasn't disclosed. CPA 14 is a publicly held, non-traded REIT and a member of the $3.5 billion W.P. Carey Group.
The build-to-suit venture is the third sale-leaseback deal Carey has made with University Technical in the past eight years. In September 2000, Carey purchased a $2.3 million, 34,600-sf facility in Glendale Heights, IL, leased to UTI and its subsidiary Custom Training Group, and provided an additional $1 million for tenant improvements.
In May 1993, Carey closed on an $8.6 million, sale-leaseback with UTI, purchasing a 103,000-sf property in Glendale Heights leased to another UTI subsidiary, UTI of Illinois.
Besides automotive repair, the Mooresville training center will provide graduates with knowledge of sales and distribution, UTI CEO Robert Hartman says in a prepared statement.
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