JONESVILLE, SC—A non-traded REIT of New York City-based W.P. Carey Inc. has acquired a 515,000-square-foot single-tenant net leased distribution center here and will build a 346,000-square-foot expansion at the property. The total investment in the acquisition and development project is $45 million.
The firm's CPA:18-Global acquired the property, which is leased to retailer Belk Inc. from an affiliate of Panattoni Development Company, which is overseeing the construction of the expansion. The expansion is scheduled to be completed in January 2015.
Belk, which has a 15 year-lease on the space, is investing $28 million on the expansion to develop a state-of-the-art e-commerce distribution facility. Improvements will include conveyor systems, racking and automation. Panattoni was represented in the transaction by John Huguenard and Sean Devaney of Colliers Investment Services Group.
W. P. Carey Managing Director Chad Edmonson says of the firm's latest acquisition, "Over the past decade, e-commerce sales have grown from less than 1% to over 5% of total retail sales. Consistent with that trend, Belk continues to grow its e-commerce business and expand the capabilities of its belk.com website. Our acquisition of the existing Jonesville facility and the build-to-suit financing of the expansion are supporting this initiative and helping to position the company for future growth, while securing a solid income-generating asset for CPA:18 –Global's investors."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.