CPA®:17 – Global, a non-traded REIT sponsored and managed by W.P. Carey has acquired a Class A office building in Plymouth, Minnesota for a purchase price of approximately $34 million.
The 182,000 square foot facility will be leased to Smiths Medical starting February 2015 and will be the site of its future headquarters. A division of Smiths Group plc, Smiths Medical is a leading supplier of specialist medical devices, consumables, and equipment around the globe.
W. P. Carey’s Managing Director and Co-Head of Global Investments, Gino Sabatini, commented, “Working with both an institutional seller and a local developer, Interstate Partners, we were able to structure the acquisition of a long-term income-generating asset that will be accretive to CPA®:17 – Global’s portfolio.”
Built in 1999, the building is part of a mixed-use development that features retail, residential, and restaurant space. The property has convenient access to highways and is located in Twin Cities’ west/northwest commercial corridor.
Mr. Sabatini added, “Having recently acquired an asset in the submarket on behalf of another of our managed REITs, we are pleased to add this asset to CPA®:17 – Global’s portfolio. Plymouth, which is recognized as the healthiest submarket in the Twin Cities, is an area comprised of 25.5 million square feet of office space with a reported 7.2% vacancy rate. Additionally, Plymouth is home to many large corporations in the Minneapolis/St. Paul metropolitan area and is among the ten largest communities in Minnesota.”
CPA®:17 – Global specializes in investing in income-producing commercial properties and real estate related assets. Formed in 2007, the REIT closed to new investors in December 2012. As of September 30, 2014, the company’s portfolio consisted of full or partial ownership interests in 359 fully-occupied properties, substantially all of which were triple-net leased to 109 tenants, and totaled approximately 35 million square feet.