W. P. Carey Inc. has invested $137 million in three industrial properties, covering approximately two million square feet.
W. P. Carey said the investments comprise five operationally-critical properties net leased to industry-leading tenants, bringing investment volume year-to-date to approximately $900 million with a weighted-average lease term of approximately 22 years.
W. P. Carey acquires;
-A 703,000-square-foot Class-A logistics facility in Alabama, net leased to JOANN, for $49 million in a sale-leaseback transaction. The fungible, cross-docked facility features up to 40-foot clear heights and is strategically located along I-85 with easy access to both Atlanta and Montgomery, on a site that allows for future expansion. It is triple-net leased for a period of 20 years, with fixed annual rent escalations.
-A 779,000-square-foot recently-constructed distribution facility in New York, net leased to Orgill, the world’s largest independent hardware distributor and an existing tenant of W. P. Carey, for $45 million in a sale-leaseback transaction. The facility serves as Orgill’s primary distribution center for the Northeast and was constructed to meet growing sales and to provide faster, more efficient service throughout the region. It is located along the NY-49 highway in proximity to I-90 and contains significant equipment owned by Orgill, including extensive racking systems with automated sorting capabilities. Since becoming a tenant in 2018, W. P. Carey has partnered with Orgill on four acquisitions and two property expansions and now owns four of Orgill’s seven U.S. distribution centers. The facility is triple-net leased for a period of 26 years with fixed rent escalations.
-A three-property logistics portfolio totaling 497,000 square feet, net leased to a North American manufacturer of products for home living, industrial and recreational uses, for $43 million in a sale-leaseback transaction. The company has robust supply chain capabilities with a diverse, vertically integrated supplier network, long-standing relationships with big-box retailers and an infrastructure support system that provides e-commerce services. The fungible properties comprise the company’s primary distribution centers, including a portion that houses its headquarters, and are well-located in the core logistics markets of Chicago and Toronto. Two of the facilities are in close proximity to the O’Hare International Airport—in the O’Hare and North Cook County submarkets, which rank among the strongest industrial submarkets in the U.S.—while the third is located in an industrial suburb of Toronto with easy access to the CBD, as well as major roadways, airports, railways and shipping ports. The portfolio is triple-net leased on two USD-denominated master leases by country for a period of 15 years, with fixed annual rent escalations.
What is Sale and Leaseback?
“These industrial investments demonstrate our ability to differentiate ourselves in the market as a trusted and reliable capital partner with the experience needed to efficiently execute on high-quality deals. We are excited to have worked with both new and existing tenants on these sale-leasebacks, enabling them to convert their real estate into working capital to help them achieve their business objectives,” said Gino Sabatini, Head of Investments, W. P. Carey.