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CPA:17 – Global Buys Jacksonville University Student Housing Facility for $18 Million

Corporate Property Associates 17 – Global, a publicly registered non-traded real estate investment trust sponsored by W.P. Carey Inc. (NYSE:WPC), has acquired a newly constructed student residence hall in Jacksonville, Florida, for approximately $18 million. The seller was Rimrock Devlin Development, a full service national developer based in Lake City, Florida.

Completed in 2015, the four-story, three-wing facility serves as the primary housing option for all first-year students at Jacksonville University. The 274-bed residence hall is the first new freshman dormitory at the university since 1968 and incorporates the best practices in student housing, including collaborative living space and modern features. High-tech amenities include fiber optic communications, enhanced performance wiring and cell phone range extenders. It is 100 percent occupied and part of the first stage of a multi-phase development plan for the riverfront property adjacent to the university.

“Within the student housing sector, we’re attracted to assets that address a clear supply-demand imbalance and offer the opportunity to secure long-term, income generating investments,” said Zachary Pasanen vice president of W. P. Carey. “This new state-of-the-art student housing facility leased to a highly regarded university with an unmet demand for campus housing fulfills our investment criteria and adds an attractive yielding, long-term net-leased asset to the CPA®:17 – Global portfolio.”

The 70,000-square-foot facility is triple-net leased on a long-term basis to Jacksonville University. The lease has 19.6 years remaining and includes fixed rental escalations.

Jacksonville University is a private, not-for-profit four-year liberal arts university.

CPA:17 – Global was formed in 2007 to invest in a diversified portfolio of income-producing commercial properties and real estate-related assets and has a portfolio that consists of 113 tenants in 11 countries and over 20 industries. The company has raised $2.5 billion in equity. W. P. Carey Inc. is a global net lease real estate investment trust specializing in corporate sale-leaseback and build-to-suit financing and the acquisition of single-tenant net lease properties

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