CPA:17 – Global Completes Sale-Leaseback and Build-to-Suit for Five Distribution Facilities
Corporate Property Associates 17 – Global Inc., a publicly registered non-traded REIT sponsored by W.P. Carey (NYSE: WPC), completed a $41 million sale-leaseback of four existing distribution facilities and build-to-suit financing for one additional facility. The facilities will be master leased to Concordance Healthcare Solutions, a healthcare distribution company.
The existing facilities, located in Kalamazoo, Michigan; Tiffin, Ohio; Andersonville, Tennessee; and Shelbyville, Indiana, represent a substantial portion of Concordance’s revenue and earnings. The build-to-suit facility, located in Millwood, West Virginia, is expected to be completed later this month. All five properties will be combined under a long-term, single triple-net lease with fixed annual rent increases.
“The sale-leaseback and build-to-suit components of the transaction with Concordance represented the opportunity to add a portfolio of critical operating properties to CPA®:17 – Global’s portfolio,” said Tyler Swann, W. P. Carey vice president. “We believe these assets, master leased on a triple-net basis to a growing company in a stable industry, will generate attractive initial cash flow and increasing returns for our investors over the term of the lease.”
In other CPA:17 news, last month the REIT purchased a solar distribution facility in Perrysburg, Ohio for approximately $14 million.
CPA:17 – Global went effective in November 2007 and closed in January 2013 after raising $2.9 billion in investor equity. The company’s portfolio consists of 446 properties with an investment cost of $4.5 billion, since the company’s last quarterly filing with the Securities and Exchange Commission.
