CPA®:18 – Global, a non-traded REIT managed by W.P. Carey, announced today that it has acquired a research and development facility for approximately $43 million.
The REIT, which focuses on income-generating commercial properties and real estate-related assets, purchased the 191,000 square foot facility from Liberty Property Trust. The facility is located in Plymouth, Minnesota and is leased to Alliant Techsystems Inc. (ATK) for a term of 10 years. The property’s location provides easy access to highways and is in a strong commercial area.
“The asset is located in what is recognized as the healthiest submarket in the Twin Cities—an area consisting of 25.5 million square feet of office space and a reported 7.2% vacancy rate. It is also home to many large corporations in the Minneapolis/St. Paul metro area and within the top ten largest communities in Minnesota.” commented Gino Sabatini, W. P. Carey Managing Director and Co-Head of Global Investments.
ATK specializes in aerospace, defense, and outdoor sports and recreation. The company has resided in the Plymouth facility since 2001 and has made large investments into the building to accommodate its specialized labs and equipment, which include integration and test laboratories. As ATK’s Armament Systems Division headquarters, the Plymouth facility is where new products are designed, developed, and tested.
Mr. Sabatini added, “This transaction with ATK allowed us to provide liquidity to an institutional investor while adding a critical asset leased to a credit-rated company to CPA®:18 – Global’s portfolio. We believe that the acquisition of this net-leased asset adds accretive current yield and long term appreciation potential to the CPA®:18 – Global portfolio.”
Through September 30, 2014, 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. As of July 1, 2014 Class A shares are closed to new investors.