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Non-Traded REIT Buys Distribution Facility for $45 Million

Non-traded REIT CPA®:18 – Global has acquired a distribution center in Jonesville, South Carolina. The REIT’s sponsor, W.P. Carey made the announcement today.

The 515,000 square foot property is leased to Belk, Inc., one of the largest retailers in the United States. Belk boasts $4 billion in annual revenues and sells a range of products including fashion apparel, housewares, fine jewelry, and more. The Jonesville property plays a large role in Belk’s e-commerce business.

W. P. Carey Managing Director, Chad Edmonson commented, “The investment in the Belk facility represents W. P. Carey’s ability to source, structure and execute on single-tenant transactions that capitalize on growth trends, including those fueled by the ongoing expansion of e-commerce among retailers and their customers. Over the past decade, e-commerce sales have grown from less than 1% to over 5% of total retail sales. Consistent with that trend, Belk continues to grow its e-commerce business and expand the capabilities of its website.”

A portion of the $45 million transaction will go toward a 346,000 square foot expansion, which will be overseen by the seller of the property, an affiliate of Panattoni Development Company. With a 15-year lease on the property, Belk is investing $28 million into the expansion, which will include conveyor systems, racking, and automation, making the property a state-of-the-art distribution center for Belk’s online sales.

“Our acquisition of the existing Jonesville facility and the build-to-suit financing of the expansion are supporting this initiative and helping to position the company for future growth, while securing a solid income-generating asset for CPA®:18 – Global’s investors,” added Mr. Edmonson.

CPA®:18 – Global seeks to create a diversified portfolio of income-generating commercial properties and real estate-related assets. Through March 31, 2014, the REIT raised gross offering proceeds for its Class A common stock and Class C common stock of $589.8 million and $46.5 million, respectively. As of July 1, 2014, Class A shares are closed to new investors.