CPA:18 – Global, a publicly registered non-traded real estate investment trust sponsored by W.P. Carey Inc. (NYSE: WPC), purchased a 550,000-square-foot corporate headquarters and industrial printing facility in Menomonee Falls, Wisconsin for approximately $23 million.
The facility, which is 15 miles northwest of Milwaukee, is triple-net leased for 20 years to Arandell Corporation.
Founded in 1922, Arandell is a catalog printer for high-end consumer retailers in North America. The company’s services include high-quality premedia, catalog printing, mailing, distribution, list management, database marketing, mobile solutions, logistics and consulting to the retail and direct mail catalog markets. It operates primarily in the United States and serves retail and direct mail merchandisers, including some of the top brands in the country.
The property has served as Arandell’s corporate headquarters and sole printing facility since 1981. Over the last 35 years, the company has invested in multiple expansions to the facility for its warehousing and printing operations. It is currently one of the largest web offset printing and binding facilities in North America.
The triple-net lease is for 20 years with annual CPI escalations.
W. P. Carey vice president Zachary Pasanen commented, “The acquisition of the Arandell facility further demonstrates the strength of our corporate financing expertise and our ability to provide liquidity to privately held companies. In structuring the transaction, we incorporated a per square foot rental rate consistent with the current market while also providing an attractive yield to CPA:18 – Global. As a result, we were able to achieve our objective of generating solid near-term cash flows while supporting longer-term residual value.”
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