W. P. Carey & Co. has acquired five retail stores leased to Walgreen Co. The properties, comprising a total of 74,100 square feet, are located in Virginia Beach, Virginia; Florence, Alabama; Snellville, Georgia; Concord, North Carolina and Rockport, Texas. The purchase price was approximately $25 million.
W. P. Carey & Co. LLC WPC +0.60% announced today that it has acquired five retail stores leased to Walgreen Co. The properties, comprising a total of 74,100 square feet, are located in Virginia Beach, Virginia; Florence, Alabama; Snellville, Georgia; Concord, North Carolina and Rockport, Texas. The purchase price was approximately $25 million.
Commenting on the Walgreen acquisition, W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini, noted, “The five properties acquired are leased to an investment grade tenant and represent a solid income-generating investment. The addition of these facilities to our portfolio is consistent with our investment objectives, providing the potential for appreciation over the longer term as well as an attractive current yield.”
The firm also announced that CPA(R):17 – Global, one of its publicly held non-traded REIT affiliates, has acquired an industrial and headquarters facility located in Avon, Ohio. The 116,000 square foot facility has been leased back to Bearing Technologies, LLC under a 15-year net lease. The purchase price was approximately $7 million.
Bearing Technologies is the only design, test validation and manufacturing organization of aftermarket wheel hub assemblies in the United States. The company also manufactures components related to automotive bearing products for the aftermarket. Founded in 1997, the company’s customers are among the largest distributors and manufacturers of automotive original equipment and aftermarket products across the globe.
Commenting on the Bearing Technologies acquisition, Mr. Sabatini added, “The Bearing Tech transaction demonstrates how we are able to work with privately owned companies to structure long term sale-leasebacks that provide access to the cash value embedded in their real estate assets. In the case of Bearing Tech, we are purchasing a mission-critical asset of a highly successful non-public company. Because we have the capability to do our own credit underwriting by analyzing the companies, their industries, their positions in the industries and the markets they serve, we are able to provide attractive long term financing to non-public companies as well as structure investments that meet the established criteria for CPA(R):17 – Global.”
W. P. Carey & Co. LLC W. P. Carey & Co. LLC WPC +0.60% is provides long term sale leaseback and build to suit financing for companies worldwide and manages a global investment portfolio of approximately $12.7 billion. Publicly traded on the New York Stock Exchange, W. P. Carey and its CPA(R) series of non-traded REITs help companies and private equity firms unlock capital tied up in real estate assets. The W. P. Carey Group’s investments are highly diversified, comprising contractual agreements with approximately 284 long term corporate tenants spanning 28 industries and 18 countries.
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the Company’s actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the Company, reference is made to the Company’s filings with the Securities and Exchange Commission.