W. P Carey Group Closes on Acquisition of U.S. Home Corporation's Corporate Headquarters
NEW YORK, NY – October 19, 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 the corporate headquarters facility of U.S. Home Corporation 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 52,100 square feet office facility is located on 3.09 acres approximately 20 minutes from downtown Houston, Texas. Under the terms of the sale-leaseback transaction, the facility will be leased to U.S. Home under a 15-year net lease. The purchase price was approximately $7.3 million.
U.S. Home Corporation is a subsidiary of Lennar Corporation. Lennar, founded in 1954, is headquartered in Miami, Florida. The Company has homebuilding operations in 13 states and is one of the nation's leading builders of quality homes for all generations, building affordable, move-up and retirement homes. The Company builds homes under the Lennar Homes, U.S. Home, Greystone Homes, Village Builders, Renaissance Homes, Orrin Thompson Homes, Lundgren Bros. and Winncrest Homes brand names. Lennar's Financial Services Division provides residential mortgage services, title, closing and other ancillary services for Lennar homebuyers and other customers.
Commenting on the transaction, W. Sean Sovak, Executive Director of W. P. Carey, stated "The sale-leaseback with U.S. Home illustrates W. P. Carey's ability to structure flexible transactions to enhance cash flow of growing companies such as U.S. Home."
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.
