W. P. Carey Closes $410M In Investments in Q4

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NEW YORK—Net-lease REIT W.P. Carey has closed about $410 million in deals for the fourth quarter, a number that includes six investments totaling $282 million and more than 2.7 million square feet. For the full year, the REIT has closed about $870 million in transactions. Gino Sabatini, W.P. Carey’s head of Investments, notes that the end of the year is often its most active period.

The investments, which are located in the US and Europe, are diversified across property types and are triple-net leased with a weighted-average term of 20 years.

Its recent transactions included:

  • a $94 million sale-leaseback of a 1.2 million square foot logistics and distribution facility net leased to a S&P 500 manufacturing company. The facility is the tenant’s second largest distribution center in the US, used primarily for distribution to its east coast markets and South America. It is located in the greater Charlotte area on the border of North and South Carolina close to Interstate 485 and Interstate 77. The lease is guaranteed by the tenant’s parent company, which is rated A by Standard & Poor’s and Baa1 by Moody’s. The asset is triple-net leased for a period of 12 years with fixed annual rent escalations.
  • a $56 million acquisition of a 243,000 square foot experiential retail store, net leased to a wholly-owned subsidiary of Bass Pro Group. The facility, located on Interstate 78 in Pennsylvania, has been in operation for more than 17 years. The asset is a destination experiential retail location, featuring restaurants, nature exhibits, a museum, conference rooms and an aquarium. The lease is guaranteed by the tenant’s ultimate parent, which is rated B+ by Standard & Poor’s and Ba3 by Moody’s. The asset is triple-net leased for a period of 24.5 years with CPI-based rent escalations.
  • a $39 million sale-leaseback of a six-property portfolio, comprising four flex-industrial and two office facilities totaling 213,000 square feet and representing the majority of the tenant’s operating footprint. The mission-critical portfolio is net leased to an engineering design solutions and analysis provider. The facilities, located in Texas, Ohio and Louisiana, are master-leased on a triple-net basis for a period of 20 years with fixed annual rent escalations. W. P. Carey has also agreed to invest up to an additional $2.5 million in the expansion of the Ohio facility, with completion expected in late 2020.
  • a $38 million sale-leaseback of two logistics facilities located in Denmark and Sweden, totaling 496,000 square feet, net leased to Stark Group A/S, which is the largest supplier of building and construction products in the Nordic region. The two assets are located in prime distribution centers with easy access to major highways and shipping routes. The assets are triple-net leased for a period of 20 years with annual Danish and Swedish CPI-based rent escalations.
  • a $38 million acquisition of a 385,000 square foot Class-A distribution facility in the UK that is net leased to Poundstretcher Limited, a variety discount retailer established in 1981 with over 450 locations across the country. The facility is in Yorkshire within a core logistics corridor that is close to major motorways and arterial routes. It is triple-net leased for 23 years with annual RPI-based rent escalations.
  • a $17 million sale-leaseback of a 162,000 square foot warehouse facility, net leased to Safco Dental Supply, a national distributor of dental products. The facility is located near Chicago’s O’Hare Airport and houses its headquarters and sole distribution center. The asset is triple-net leased for 20 years with fixed annual rent escalations.

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