NEW YORK, NY – December 11, 2001 – W. P. Carey & Co. LLC (NYSE: WPC), a leading real estate investment banking firm and lessor of net leased corporate properties, announced today that it has acquired and leased-backed two facilities from Atrium Companies, Inc., one of the largest manufacturers and distributors of residential windows and doors in the United States, for approximately $16.2 million.
The properties consist of a 400,000 square foot manufacturing and distribution facility in Welcome, North Carolina and a 165,000 square foot manufacturing and distribution facility in Murrysville, Pennsylvania. The facilities were purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a non-traded real estate investment trust (REIT) and member of the $3.5 billion W. P. Carey Group.
Edward V. LaPuma, Executive Director of W. P. Carey said, "This transaction is another example of W. P. Carey's ongoing commitment to meet the financing needs its tenant-clients. Companies that have completed sale-leaseback transactions with W. P. Carey continue to realize the benefits of this alternative form of financing. As a result of this most recent sale-leaseback transaction, as well as our two previous transactions, Atrium has been able to access capital that has enabled it to become one of the largest manufacturers and distributors of residential windows and doors in the United States."
This is the third sale-leaseback that W. P. Carey has completed with Atrium on behalf of CPA®:14. In November 1999, CPA®:14 acquired three facilities, one in Dallas, Texas and two in Greenville, Texas. In August 2000, CPA®:14 provided the construction financing for the build-to-suit acquisition of Atrium's manufacturing and distribution center in Wylie, Texas which was completed in March 2001. Under the terms of this transaction, the previous lease on the Wylie facility will be amended to include the Welcome and Murrysville facilities so that the three properties are governed by one 20-year bond-type net lease.
Founded in 1948, Atrium is the largest non-wood window manufacturer in the U.S. with over 4,500 employees, $500 million in revenues and 50 manufacturing and distribution facilities in 25 states. The Company began manufacturing operations in 1953, and now offers a complete product line of aluminum and vinyl windows and doors.
Jeff L. Hull, President and Chief Executive Officer of Atrium Companies, Inc. said, "The transaction provided Atrium and its lessor on the Welcome building the opportunity to sell the buildings, thus providing liquidity, and subsequently lease them back under a long term financing arrangement. Atrium is in the window manufacturing business, not real estate. It is an added plus to partner with someone like W. P. Carey, so that our needs are met without the hassle of recurring real estate negotiation."
CPA®:14 invests in single-tenant commercial properties. These properties are typically purchased under a long-term, triple-net lease in which the tenant is responsible for maintaining the premises, insuring the buildings and paying real estate taxes. As of September 30, 2001, CPA®:14's diversified portfolio consisted of 87 properties net-leased to 50 tenants throughout the United States and Europe.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through the corporate net lease, or sale-leaseback structure. The firm and its affiliates continue to be the leading lessors of net leased corporate real estate in the United States. As the largest publicly traded limited liability company in the world, the company owns and/or manages more than 400 commercial and industrial properties throughout the United States and Europe comprising of more than 50 million-square-feet of space. The firm is headquartered in Manhattan and has offices in London and Paris.
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.
