NEW YORK, Nov. 18, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net-lease real estate investment trust (REIT) specializing in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that CPA®:18 – Global, one of its managed non-traded REITs, has acquired a 191,000 square-foot office and R&D facility for approximately $43 million. The facility, purchased from Liberty Property Trust, is located in Plymouth, Minnesota and is leased to Alliant Techsystems Inc. (ATK) for a period of approximately 10 years.
Key Facts
- Critical facility: The tenant, ATK, is an aerospace, defense and outdoor sports and recreation company with operations in 21 states, Puerto Rico and internationally. Since moving into the building in 2001, ATK has made substantial investments in the facility to meet its specific criteria for testing and housing specialized labs and equipment. The facility serves as headquarters for ATK's Armament Systems Division and contains ATK's product integration and test laboratories, where new products are designed, developed and tested.
- Credit-rated tenant: ATK is currently rated BB with a stable outlook by Standard & Poor's and Ba2 with stable outlook from Moody's.
- Attractive, well-located real estate: The facility is located in the Twin Cities' strong west/northwest commercial corridor that has excellent access to highways.
Management Commentary
W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini, stated: "This transaction with Liberty Property Trust allowed us to provide liquidity to an institutional investor while adding a critical asset leased to a credit-rated company to CPA®:18 – Global's portfolio. We believe that the acquisition of this net-leased asset adds accretive current yield and long term appreciation potential to the CPA®:18 – Global portfolio."
Commenting on the submarket, Mr. Sabatini noted: "The asset is located in what is recognized as the healthiest submarket in the Twin Cities—an area consisting of 25.5 million square feet of office space and a reported 7.2% vacancy rate. It is also home to many large corporations in the Minneapolis/St. Paul metro area and within the top ten largest communities in Minnesota."
W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Sabatini are examples of forward looking statements. A number of factors could cause CPA®:18 – Global's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated; and risks related to CPA®:18 – Global's offering of shares. For further information on factors that could impact CPA®:18 – Global, reference is made to CPA®:18 – Global's respective filings with the Securities and Exchange Commission.
Company contact:
Kristina McMenamin
W. P. Carey Inc.
212-492-8995
[email protected]
Press contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
[email protected]
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SOURCE W. P. Carey Inc.
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