NEW YORK, June 17, 2021 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, today announced three industrial investments totaling $137 million and covering approximately two million square feet. 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.

The investments include:

  • $49 million sale-leaseback of a 703,000-square-foot Class-A logistics facility in Alabama, net leased to JOANN, the U.S. category leader for sewing and fabrics, and one of the fastest growing competitors in the arts and crafts industry. Established in 1943, JOANN has built a large omni-channel platform with retail stores in 49 states in addition to a robust e-commerce business, which has contributed to significant sales growth, supported by a growing customer base and consistent demand from existing customers. 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. Built in 2005, it supplies more than one-third of its nearly 900 retail locations nationwide. JOANN has made substantial investments in equipment for the facility, underscoring its criticality. It is triple-net leased for a period of 20 years, with fixed annual rent escalations.
  • $45 million sale-leaseback of 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. 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.
  • $43 million sale-leaseback of 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. 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.

Gino Sabatini, Head of Investments, W. P. Carey said: "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."

W. P. Carey Inc.

W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $19 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,261 net lease properties covering approximately 146 million square feet as of March 31, 2021. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry. 
www.wpcarey.com

This press release may contain forward-looking statements within the meaning of U.S. Federal securities laws, including the comments of Mr. Sabatini. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate, including the continuing impact of the COVID-19 pandemic; the supply of and demand for commercial properties; interest rate levels; 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 W. P. Carey, reference is made to its filings with the U.S. Securities and Exchange Commission.

W. P. Carey Inc. Contacts:

Press Contact:
Anna McGrath
+1 212-492-1166 
amcgrath@wpcarey.com

Institutional Investors:
Peter Sands
+1 212-492-1110
institutionalir@wpcarey.com

W. P. Carey Inc. Logo. (PRNewsFoto/W. P. Carey Inc.)

 

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SOURCE W. P. Carey Inc.

Copyright 2021 PR Newswire

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