CPA:17 – Global, a publicly registered non-traded real estate investment trust sponsored by W.P. Carey Inc. (NYSE: WPC), has acquired a portfolio of six retail properties. The total acquisition price was approximately $88 million, including acquisition fees.
Three of the properties are located in Milwaukee, Wisconsin. The remaining three are located in Green Bay, Wisconsin; Fargo, North Dakota; and Joliet, Illinois.
The facilities are leased to an affiliate of The Bon-Ton Stores Inc. for a period of 20 years. The 20-year master lease covers all six department stores.
Bon-Ton will use the sale proceeds to repay an existing mortgage on the properties acquired.
W. P. Carey managing director Gino Sabatini says that “Given the criticality of these retail stores to Bon-Ton’s ongoing operations, an attractive yield on the investment and the inclusion of annual CPI adjustments, we believe the investment is a valuable addition to the CPA:17 – Global portfolio.”
Bon-Ton operates department stores offering brand-name apparel and accessories for women, men and children, as well as cosmetics, home furnishings, footwear and other goods. The company operates 270 stores, including nine furniture galleries and four clearance centers in 26 states in the Northeast, Midwest and upper Great Plains. Bon-Ton has a market capitalization of $100 million and is rated B3 and B- by Moody’s and Standard & Poor’s , respectively.
Each store anchors a high-quality mall or lifestyle center and is ranked in the top 25 percent of all Bon-Ton stores in terms of total sales. The malls are in prime locations along interstates, in close proximity to major metropolitan areas, and have exhibited sales per-square-foot ranging from $350 to $595.
CPA:17 – Global was formed in 2007 to invest in a diversified portfolio of income-producing commercial properties and real estate-related assets. The program closed to new investments in December 2012.