W. P. Carey Group Closes on Acquisition of Property in Kansas City, Missouri
$6.5 Million Purchase of 120,855 Square Foot Distribution Facility
NEW YORK, NY – October 12, 2000 – W. P. Carey & Co. LLC (NYSE: WPC), a leader in the ownership and net leasing of corporate properties, today announced that it has closed on the acquisition of a steel and aluminum distribution facility leased to Earle M. Jorgensen Company on behalf of Corporate Property Associates 14 Incorporated (CPA®:14). CPA®:14, a public, non-traded real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group.
The 120,855 square feet warehouse distribution facility, which includes 10,347 square feet of office space, is situated on a 7.45-acre site. The building is located five minutes from downtown Kansas City and is 1.5 miles from I-435 and within 10 miles of I-35, I-70 and I-470. Under the terms of the transaction, the facility continues to be leased to Jorgensen under a twenty-year, bond-type triple-net lease, which commenced March 2000. The purchase price was approximately $6.5 million.
The tenant, the Earle M. Jorgensen Company ("EMJ"), a metals distribution company, is one of the largest and most sophisticated companies in the $45 billion industry. The Company processes and distributes over 30,000 different carbon, alloy, stainless and aluminum products to more than 40,000 customers across a broad range of industries. In addition, EMJ provides value-added processing services tailored to the customers' required use of the metal. The Company is a portfolio company of Kelso & Company, a private equity investment firm.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The firm and its affiliates is one of the largest lessors of net leased corporate real estate in the nation. The W. P. Carey Group manages the largest publicly traded limited liability company listed on the New York Stock Exchange and four real estate investment trusts (REITS). Collectively, Carey manages over 33 million square feet of property in the USA and Europe. The W. P. Carey Group's properties have an aggregate value of approximately $2.5 billion.
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.
