CPA®: 17 Global, a non-traded REIT sponsored by W.P. Carey Inc., a global net lease REIT, recently acquired an office and data center in San Antonio, Texas for $22 million.
Leased to iHeartCommunications (iHeart) for 20 years, the 120,147 square-foot facility was constructed in 2002 as a build-to-suit for Clear Channel Communications, Inc., a leading media company now known as iHeart.
“Given the valuable data center space and improvements to the building, we believe that we were able to acquire the facility at below replacement cost. The terms of the triple-net lease provide for an attractive initial cap rate, as well as annual built-in rent increases,” commented W. P. Carey Managing Director and Co-head of Global Investments, Jason Fox.
IHeart specializes in radio, digital, outdoor, mobile, social, and live events among other services for local communities. The building is its main IT and finance shared service center.
“iHeartCommunications’ position in the broadcast and outdoor advertising sector and the highly critical real estate make for what we believe will be a long-term, income-generating investment for CPA®:17 – Global’s investors,” added Fox.
CPA®: 17 is closed to new investors and as of September 30, 2014, had over $4.2 billion in invested assets across 434 properties.