CPA:18 - Global Acquires $34.8 Million Class A Office Building Leased to Exelon Generation

NEW YORK, Sept. 10, 2015 /PRNewswire/ -- W. P. Carey Inc., a global net lease real estate investment trust (REIT) specializing in corporate sale-leaseback and 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 Class A office building in Warrenville, Illinois. The property is triple-net leased on a long-term basis to Exelon Generation. CPA^®:18 – Global purchased the property for $34.8 million, excluding acquisition fees, from The Northwestern Mutual Life Insurance Company. 

Key Facts

• Strong tenant and leader in the energy industry: Exelon Generation, a wholly-owned subsidiary of Exelon Corporation, is one of the nation's largest competitive power generators. The Exelon family of companies participates in every stage of the energy business, from generation to power sales to transmission and delivery. Exelon Generation is rated BBB by S&P and Baa2 by Moody's, while parent company Exelon Corporation is rated BBB and Baa1 and has a market capitalization of $28 billion.
• Critical, Class A office facility: The 146,800 square-foot, five-story facility was constructed as a build-to-suit in 2001 for Commonwealth Edison, which was acquired by Exelon Generation in 2003. The building's internal configuration consists primarily of flexible office space with exterior offices and interior conference rooms and cubicles. In addition, existing agreements provide access to parking spaces, a conference center and a fitness center.
• Strategic Chicago area location: The building is located 30 miles west of downtown Chicago, within a well-maintained, master-planned business park. Its proximity to Interstate 88 makes it easily accessible to commuters.

Management Commentary

Gino Sabatini, W. P. Carey's Managing Director and Head of Net Lease Investments, commented: "The acquisition of the Exelon Generation facility presented the opportunity to add a Class A office asset to the CPA^®:18 – Global portfolio. Located in an established business park with easy access to downtown Chicago, the property benefits from strong real estate fundamentals and is expected to generate attractive cash flow for our investors. In addition, its criticality to a creditworthy tenant and the long-term triple-net lease with contractual rent escalations are consistent with the investment criteria for CPA^®:18 – Global."

Jones Lang LaSalle represented The Northwestern Mutual Life Insurance Company in the transaction.    

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. For further information on factors that could impact CPA^®:18 – Global, reference is made to its filings with the Securities and Exchange Commission.

Company contact:
Brittany Rooney     
W. P. Carey Inc.                                                                
212-492-8921   
[email protected]  

Press contact:
Guy Lawrence
Ross & Lawrence
212-308-3333 
[email protected]     

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SOURCE CPA:18 -- Global