CPA: 18 – Global, a publicly registered non-traded real estate investment trust sponsored by W. P. Carey (NYSE: WPC), acquired an 88,000-square-foot office building. The property is located in Jacksonville, Florida, and is triple-net leased to Acosta Inc., a portfolio company of The Carlyle Group, for a 12-year period. The property was purchased for approximately $17 million, including acquisition fees.
Founded in 1927, Acosta is a leading outsourced sales and marketing agency serving consumer packaged goods companies and retailers in North America. Its client base includes many global consumer packaged group companies, such as Clorox, Coca-Cola, ConAgra, Heinz, Kraft Foods, Nestle and Procter & Gamble, and leading consumer electronics companies, such as Microsoft and Samsung. Acosta maintains long-standing relationships with its clients, many of which have extended more than 25 years.
The building was originally constructed in 2001 as a build-to-suit for Acosta. It currently serves as Acosta’s corporate headquarters, housing more than 400 employees, including senior executives.
W. P. Carey Vice president Zachary Pasanen commented, “The acquisition of the Acosta headquarters represented the opportunity to add a Class A office facility to CPA: 18 – Global’s portfolio. Located in one of the healthiest office submarkets in Jacksonville, the property benefits from strong real estate fundamentals and will generate attractive cash flow for CPA: 18 – Global’s investors. In addition, the acquisition demonstrates our ability to underwrite creditworthy, privately held companies and to unlock the value of their corporate real estate.”
The facility is located in Jacksonville, Florida, within the Southside submarket. The overall vacancy at the end of the first quarter of 2015 for Class A office in the area was 3.6 percent, well below the overall Class A office market in Jacksonville. The 12-year triple-net lease includes annual rent escalations averaging 3.26 percent.
Late last month, CPA: 18 – Global entered into an agreement to fund the development of a new hotel in Hamburg, Germany and agreed to provide approximately $29 million (€25 million) for the construction of the property. To read more, click here.
W. P. Carey Inc. is a global net lease real estate investment trust specializing in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net lease properties.