W. P. Carey, though one of its publicly held non-traded REIT affiliates, paid $86 million to acquire a 24-property portfolio of self-storage facilities from A-American Self Storage, the investment firm announced Wednesday. The facilities are in California, Illinois and Hawaii. W.P. Carey made its first self-storage investment in 2004, when it paid $312 million for a portfolio of U-Haul facilities.
Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that CPA®:17 – Global, one of its publicly held non-traded REIT affiliates, has acquired a 24 property portfolio of self storage facilities from A-American Self Storage. The properties comprise a total of 1.6 million square feet and are located in California, Illinois and Hawaii. The total purchase price is approximately $86 million. Eighteen properties are located in California, one in Hawaii and five in Illinois. The California and Hawaii properties will be managed by Extra Space Storage and the Illinois properties will be managed by SecurCare Self Storage.
Commenting on the acquisition, W. P. Carey President and CEO Trevor Bond noted, “We made our first investment in the self storage space in 2004 with the $312 million acquisition of 78 U-Haul facilities. Since then we have expanded our involvement in the space and developed an internal team with deep knowledge of the industry. We believe that the consistent long-term income that can be generated by appropriately structured self storage investments makes this an ideal addition to CPA®:17 – Global’s portfolio. Engaging established players in the self storage industry to manage the assets on a day-to-day basis, with oversight by our own team, adds to CPA®:17 – Global’s diversification — a hallmark of our proven investment discipline.”
W. P. Carey Director Liz Raun Schlesinger added, “This transaction is particularly exciting for us because the properties are well located in markets with good demographics and strong barriers to entry. In addition, we believe that the management and hands on oversight of our internal dedicated storage team combined with the expertise of both Extra Space Storage and SecurCare Self Storage will enable us to maximize the performance of these assets.”
Reed Smith LLP represented CPA®:17 – Global as general real estate and transaction counsel in connection with the acquisition and financing of the portfolio.
About W. P. Carey
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that provides long term sale leaseback and build to suit financing for companies worldwide and manages a global investment portfolio of approximately $11 billion. Publicly traded on the New York Stock Exchange, W. P. Carey and its CPA® series of income-generating, 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 275 long term corporate obligors spanning 28 industries and 17 countries. http://www.wpcarey.com
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.