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W. P. Carey Makes $70M Investment


W.P. Carey Inc., a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, recently completed a $70 million sale-leaseback of a mission-critical food production and distribution site in the Northeastern U.S. The site consists of six buildings totaling more than 400,000 square feet, which are triple-net leased under a master lease for a period of 25 years to an industry-leading supplier of ice cream and beverages.

Key facts:

*Industry-leading supplier: The tenant is a leader in ice cream and beverage products, with strong brand value and recognition.

*Mission-critical properties: The multi-property site has served as the company’s headquarters and primary production facility since its founding. The company has consistently invested in the properties to improve operations and accommodate future growth, including a recent expansion to its refrigerated warehouse.

*Environmentally responsible tenant: The site is powered entirely by renewable, clean energy sources through a combination of wind turbines and hydroelectric energy. The company has also implemented green initiatives to eliminate waste, optimize packaging and minimize its environmental impact.

*Long-term net lease with built-in rent growth: The assets are master leased on a triple-net basis for 25 years, with fixed annual rent escalations.

“We are pleased to have completed this accretive transaction with one of the country’s largest ice cream and beverage brands, and to add an environmentally-responsible asset to our portfolio,” says Andres Dallal, executive director of inevstments at WP Carey. “Drawing on our more than 45 years of experience investing in net lease, we were able to close quickly in order to meet the tenant’s critical timing requirements. We look forward to growing our relationship with our newest tenant and supporting their future growth objectives.”

JC Asensio, First Vice President, CBRE adds that “Given their significant experience, W. P. Carey was the ideal partner for this deal. They understood our objectives and were able to apply their real estate expertise to structure and close a transaction within a tight timeframe that maximized value and flexibility for my client.”