W. P. Carey Group Acquires Manufacturing Facility Owned By West Union Corporation
$5.5 Million Sale-Leaseback To Finance Expansion of Tempe, Arizona Manufacturing Plant
NEW YORK, NY – February 1, 2000 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced today that it has closed on the acquisition of a property located in Tempe, Arizona on behalf of Corporate Property Associates 14 (CPA®:14). CPA®:14, a private real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group. The property is leased to West Union Corporation, one of the nation's largest manufacturers and distributors of wood, aluminum and vinyl window frames and doors. The purchase price of the 116,900 square foot facility was $5.5 million. First Tennessee Bank provided a $3.5 million first mortgage at the time of closing. Under the terms of the agreement, the facility will be leased back to West Union under a bond-type net lease, with an initial term of 15 years, followed by two ten year renewal options.
Commenting on the transaction, W. P. Carey Senior Vice President, Gordon J. Whiting, noted, "We are pleased to be able to structure this transaction to meet West Union's specific needs. Our sale-leaseback is structured to allow West Union to obtain the capital required to finance the expansion of their Tempe, Arizona plant, which is the core manufacturing facility for the Company's rapidly growing Western division. Combining the sale-leaseback with the First Tennessee Bank mortgage enabled West Union to obtain the cash quickly and under favorable terms, allowing the Company to complete the plant expansion as planned, by the end of January 2000. This transaction demonstrates how our proven ability to provide creative financing solutions enables our corporate tenants to maximize their access to capital for the purpose of funding facilities expansion as well as meeting other corporate funding needs."
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 located in 41 states. 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.
