Corporate Property Associates 12 Acquires Balanced Care Corporate Headquarters
Build-to-Suit Acquisition Highlights W. P. Carey's Recognition of the Consolidation Trend Within the Assisted Living Industry
NEW YORK, NY – July 1, 1998 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced that it has completed the acquisition of a corporate headquarters facility on behalf of Corporate Property Associates 12 (CPA®:12). CPA®:12 is a member of the $2.5 billion W. P. Carey Group. The property acquired, located in Mechanicsburg, Pennsylvania, is leased to Balanced Care (Amex: BAL) under a 15 year bond type net lease. The three story Class A office building will allow the Company to consolidate its operations while leaving room for growth. The purchase price of the 42,000 square foot facility was approximately $4.8 million.
Commenting on the investment, Gordon J. Whiting, Senior Vice President of W. P. Carey & Co., noted, "Balanced Care's regional focus on secondary markets and its increasing brand name recognition offers opportunities for growing revenues through the provision of additional services. Given the ongoing consolidation within the assisted living industry Balanced Care's focus on this defined market niche and growth strategy should give the company a competitive edge that will enable it to grow and attain superior performance over time. In evaluating the investment these factors made the acquisition particularly attractive. In addition the build-to-suit sale leaseback of the Company's headquarters allows it to free up cash that can be deployed in the implementation of its growth and acquisition strategies. Because of our extensive experience with build-to suit transactions we were able to streamline the due diligence, documentation, and closing processes to address the Company's needs."
W. P. Carey Second Vice President Anne R. Coolidge, added, "The property's location in close proximity to major transportation links is desirable with respect to attracting the area's growing labor supply as well as good access in general. In addition the state-of-the-art headquarters building will be critical to the Company's business thereby providing a secure investment for our shareholders."
Balanced Care is one of the largest providers of senior care services in the country. Providing a complete range of long-term care to the elderly in non-urban secondary markets through a complete range of independent living and skilled nursing operations, the Company's facilities and net works are designed to meet the needs of upper middle, middle and moderate income populations. Currently operating 51 facilities, the Company's revenues for the nine months ended March 31, 1998 were $65.7 million.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through sale-leaseback or net lease and other long term lease financing structures. The firm, and its affiliates, is one of the largest lessors of net leased corporate real estate in the nation. Carey has sponsored the Corporate Property Associates (CPA®) series of public real estate partnerships and real estate investment trusts (REITs) which, together with Carey Institutional Properties, collectively own over 33 million square feet of property located in 41 states. The firm recently consolidated the interests of investors in its initial nine investment partnerships, CPA®:1-9, into the largest publicly traded Limited Liability Company listed on the New York Stock Exchange.
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.
