W. P. Carey Announces Three Investments Totaling $149 Million


W. P. Carey Inc. (NYSE: WPC), a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, today announced three investments totaling $149 million and covering approximately 1.5 million square feet. The investments comprise operationally-critical properties triple-net leased to industry-leading tenants with a weighted-average lease term of approximately 24 years. The transactions bring year-to-date investment volume to $203 million, including the completion of two capital investment projects totaling $54 million.

The investments include:

  • $75 million sale-leaseback of two packing, production and distribution facilities, which include cold storage, net leased to a leading vertically integrated grower-packer-shipper of seasonal, high-value summer-fruit. The facilities are strategically located in proximity to the tenant's approximately 20,000 acres of owned farmland in California's Central Valley, which benefits from climate conditions ideal for year-round farming. The mission-critical facilities represent the majority of the company's storage, processing and distribution operations and total over one million square feet. The tenant has invested significantly in the facilities, underscoring their criticality. The facilities are triple-net leased under a master lease for a 25-year term, with fixed annual rent increases.
  • $55 million acquisition of seven auto dealerships, a centralized vehicle conditioning center and two office facilities totaling 170,000 square feet, net leased to Auto Lenders, a leading regional used-vehicle retailer focused on the remarketing of higher-quality off-lease vehicles, with an operating history of over 30 years. Located in New Jersey and Pennsylvania, the facilities comprise the entirety of Auto Lenders' operating footprint, including dealerships, servicing centers and headquarters for each of its business segments. The dealerships are located in areas with strong traffic visibility and accessibility and the company has benefited from consistent growth in recent years, supported by strong demand for used vehicles. The facilities are subject to a newly negotiated, triple-net master lease with a 25-year term and fixed annual rent increases.
  • $19 million sale-leaseback of two U.S. distribution facilities totaling 296,300 square feet, net leased to a leading plastics distributor in North America and Europe. The tenant serves a diverse base of over 10,000 customers and distributes its products in more than 60 countries worldwide. The tenant holds a top market position in plastics distribution in North America and serves a diverse range of end markets, including automotive, healthcare, packaging, consumer, electronics and general industrial clients. The facilities benefit from rail access and close proximity to key customers. They are triple-net leased for a 20-year term, with fixed annual rent increases.

Gino Sabatini, Head of Investments, W. P. Carey said: "The investments announced today show continued momentum in our deal closings and reflect the enduring demand from companies for long-term net lease financing. Our reputation as a trusted and reliable capital partner and ability to close all-equity were critical in securing these accretive transactions and enabled us to add a number of high-quality assets to our portfolio. W. P. Carey has been a steady source of long-term capital for companies looking to unlock the value of their real estate, so we are pleased to establish a relationship with our newest tenants to help them achieve their business objectives."

W. P. Carey Inc. W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.

Recent Deals

Interested in advertising your deals? Contact Edwin Warfield.