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 revealed investments totaling approximately $53 million. The investments comprise mission-critical industrial properties triple-net leased to industry-leading tenants with strong private equity sponsorship and a weighted average lease term of 20 years.
The transactions include:
*$19 million sale-leaseback of a 301,000 square foot warehouse and light-manufacturing facility in Statesville, NC, net leased to Founder Sport Group, a leading manufacturer and supplier of stock and sublimated team uniforms, performance athletic wear and fan wear under the Badger Sport and Alleson brands. The property operates as Founder Sport Group’s primary fulfillment center in the U.S. as well as its corporate headquarters, underscoring its criticality. The facility is triple-net leased for a period of 20 years with annual uncapped CPI rent increases.
*$24 million sale-leaseback of eight production facilities totaling 525,000 square feet located across the U.S. and Mexico and net leased to a leading global manufacturer of electrical wire harnesses, control boxes and other value-added components for a diverse customer base. The mission-critical portfolio represents a significant portion of the company’s North American manufacturing footprint. The properties are triple-net leased for a period of 20 years under USD-denominated master leases by country, with annual rent escalations based on U.S. CPI.
*$10 million sale-leaseback of two manufacturing and distribution facilities totaling 147,000 square feet in Westerville, OH and North Wales, PA, net leased to Integrated Warehouse Solutions (“IWS”), a manufacturer of specialty heavy-duty industrial material handling equipment and a provider of warehouse safety solutions. The mission-critical facilities serve as the key production centers for two of IWS’ subsidiaries. The properties are triple-net leased for 20 years with fixed annual rent escalations.
Gino Sabatini, Head of Investments, W. P. Carey, said: “Today’s announcement is a great example of our ability to work with private equity firms to develop customized deal structures that support their broader investment strategies and provide capital to their portfolio companies. As GPs face increasing competition for new acquisitions amid record levels of dry powder, sale-leasebacks are an innovative tool for firms looking to obtain the most cost-efficient capital structure.
“W. P. Carey’s ability to source, structure and secure significant accretive transactions within a sector and asset class facing high demand is evidence that our improved cost of capital and established reputation continue to position us as the preferred long-term partner for companies looking to unlock the value of their real estate. We look forward to deepening our relationship with our newest tenants and supporting their ongoing growth objectives.”