Non-Traded REIT Completes Four Single-Tenant Transactions
CPA®:18 – Global, one of W.P. Carey’s managed non-traded REITs, recently made four acquisitions in four states for a total of approximately $45 million.
Managing Director and Co-Head of Global Investments for W.P. Carey, Gino Sabatini, commented, “The closing of these four transactions represents W. P. Carey’s ability to source, structure and execute on single-tenant transactions for diverse types of assets leased to a variety of tenants across multiple industries.”
Mr. Sabatini continued, “In addition, they demonstrate our ability to leverage our credit and real estate analysis capabilities to underwrite build-to-suit transactions and not-for-profit enterprises, as well as underwriting more traditional corporate net-lease transactions. All four investments include assets critical to the operations of each tenant and are supported by established operating entities. We believe that well-structured investments in diverse sectors support our strategy of generating cash flow and providing income to CPA®:18 – Global investors.”
The non-traded REIT, which focuses on income-generating commercial properties and real estate-related assets, acquired a 60,000 square foot office and operations/control facility near Minneapolis, Minnesota. The occupant, Midcontinent Independent System Operator, Inc., has a remaining lease term of 11 years, and administers wholesale electricity markets for 49 transmission owners and 98 non-transmission owners.
USF Holland Inc., is set to occupy a build-to-suit truck terminal in Grand Rapids, Michigan that CPA®:18 – Global has acquired. USF Holland has a next-day trucking service network and will lease the 59,000 square-foot terminal for a period of 15 years, once completed. Located on 22 acres of land, the property will include a 40,420 square-foot dock building, a 6,500 square-foot office building, and a 12,000 square-foot shop building.
CPA®:18 – Global also acquired a warehouse and distribution facility occupied by Cooper Tire & Rubber Company. The 653,000 square-foot facility, located in Albany, Georgia, is leased to the company for another 10 years. Cooper currently operates nine manufacturing facilities and 40 distribution centers in 11 countries.
Five industrial facilities were acquired by CPA®:18 – Global, all of which are occupied by Barnsco, Inc. an integrated distributor and service provider to the concrete industry. All located in Dallas and Forth Worth, the five facilities total approximately 128,000 square feet and are leased to Barnsco for an initial term of 15 years.
CPA®:18 – Global raised gross offering proceeds for its Class A common stock and Class C common stock of $977.4 million and $113.2 million, respectively, through September 30, 2014. As of July 1, 2014 Class A shares are closed to new investors.
