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 three industrial investments totaling approximately $111 million.
According to a prepared release, the investments comprise operationally-critical properties triple-net leased to industry-leading tenants with a weighted-average lease term of approximately 22 years.
The transactions include:
$30 million sale-leaseback of three industrial facilities totaling 619,000 square feet, net leased to Wendorff Bros. Co. Inc. Wendorff manufactures, fabricates and assembles metal parts for more than 500 customers in diverse end markets. The mission-critical properties are located in Wisconsin and comprise the majority of Wendorff’s operating footprint. The portfolio is triple-net leased under a 25-year master lease with fixed annual rent escalations.
$15 million sale-leaseback of two industrial facilities in Ontario, Canada, totaling 285,000 square feet. The facilities are net leased to Trillium Health Care Products Inc., a leading manufacturer of branded over-the-counter pharmaceutical and prescription products. The highly critical facilities, one of which includes its global headquarters, account for all of Trillium’s manufacturing, warehouse and distribution capabilities. The properties are strategically located on the U.S. / Canada border, providing immediate access to transcontinental shipping routes. The properties are leased on a triple-net basis in USD under a master lease for a period of 22 years with fixed annual rent escalations.
W. P. Carey has also agreed to acquire a to-be-constructed, Class-A distribution facility totaling 614,000 square feet located in Tennessee for approximately $66 million. The company owns and operates dialysis facilities, outpatient cardiac and vascular labs and urgent care facilities and is a leading manufacturer and distributor of dialysis equipment and renal pharmaceuticals in North America. Construction of the facility is expected to be completed in April 2020. Upon completion in accordance with plans and specs, W. P. Carey will acquire the facility and will lease it back to the company on a triple-net lease basis for 20 years with fixed annual rent escalations.
Andrés Dallal, Executive Director of Investments, W. P. Carey, said: “Industrial continues to be one of the most sought-after sectors where we continue to successfully source deals that meet our investment criteria. Our established reputation and ability to quickly structure and close deals with multiple parties continues to position us as the preferred long-term partner for companies looking to unlock the value of their real estate. We look forward to continuing to grow our portfolio and generating shareholder value through accretive acquisitions with strong tenants and high-quality real estate.”