W.P. Carey announced today that its non-traded REIT, CPA®:18 – Global (the REIT), has completed four acquisitions. The purchases include six facilities, located in Georgia and Michigan, for a total cost of approximately $35 million.
“With the closing of these four transactions, W. P. Carey continues to grow the CPA®:18 – Global portfolio by sourcing, structuring and executing on a variety of single-tenant property types in diverse industries and locations,” commented Gino Sabatini, W. P. Carey’s Managing Director and Co-Head of Global Investments in a statement.
Located in Columbus, Georgia, the REIT acquired two facilities that total 432,800. They are leased for a term of 20 years to Swift Spinning, Inc., which is the second largest producer of ring-spun cotton yarn in the U.S. The two facilities account for all of Swift’s yarn production and had a total acquisition price of approximately $11.3 million.
In Farmington Hills, Michigan, CPA®:18 – Global acquired North American Lighting’s (NAL) research center. NAL designs, manufactures, and supplies automotive lighting products for vehicle manufacturers in North America. The 75,300 square foot building is leased to NAL for a period of 12 years and was acquired for a purchase price of about $10.2 million.
CPA®:18 – Global also acquired Automobile Protection Corporation’s (APCO) office building in Norcross, Georgia. APCO is a leading marketer and administrator of vehicle service contracts sold by automotive dealers throughout the U.S. The 50,600 square foot building was acquired for approximately $5.8 million and is leased for a term of 15 years.
Additionally, the REIT acquired two facilities in Warren and Fraser, Michigan. Both are leased for 25 years to Sur-Flo, a subsidiary of the Crowne Group. Crowne Group is a service-provider for leading original equipment, automotive, and industrial manufacturers, as well as the retail automotive aftermarket. CPA®:18 – Global already owns three Crowne Group manufacturing, warehouse, and office facilities located in Indiana and South Carolina. The Sur-Flo facilities total 210,100 square feet and were purchased for a total price of approximately $8.0 million.
“These recent transactions demonstrate our ability to structure acquisitions involving privately and publically owned enterprises that meet our established investment criteria and support our strategy of generating stable, long-term cash flow for investors,” added Sabatini.
CPA®:18 – Global was formed in 2012 to create a diversified portfolio of income-generating commercial properties and real estate-related assets.
The REIT has a maximum offering size of $1 billion and through April 30, 2014, has raised gross offering proceeds of $749.6 million.