W. P. Carey Group Acquires To-Be-Built Facility Owned by Barjan Products, LLC
Sale-Leaseback Finances Construction of Rock Island, Illinois Headquarters and Distribution Facility
NEW YORK, NY – February 29, 2000 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced today that it has acquired a to-be-built facility for Barjan Products L.L.C. from USAA Real Estate Company. W. P. Carey acquired the facility on behalf of Corporate Property Associates 14 (CPA®:14), a private real estate investment trust (REIT) which is a member of the $2.5 billion W. P. Carey Group. The property is leased to Barjan Products under a 16-year, bond-type net lease and is located in Rock Island, Illinois, approximately 165 miles west of Chicago. The purchase price for the facility was in excess of $11 million. The facility, currently under construction, with expected completion by June 2000, will serve as Barjan’s corporate headquarters and key distribution facility and will consist of approximately 240,000 square feet of distribution and headquarters space.
Barjan is the largest marketer and distributor of automotive, electric and general merchandise products to truck fleets, travel centers and truck stops across North America. Barjan distributes their own branded products (barjan®, Diesel, Wilson®), as well as other nationally-recognized brand name products to more than 4,000 travel centers and retail outlets throughout the US and Canada.
Commenting on the transaction, W. P. Carey First Vice President, W. Sean Sovak stated, "The transaction with Barjan Products is another example of W. P. Carey’s ability to join with a solid development team such as USAA Real Estate Co. to meet the particular financing needs of growing companies. By securing long term sale/leaseback financing early in the process, Barjan was able to avoid the incremental costs associated with independent construction financing, recapture funds previously paid out by the company related to the project, and retain capital for future growth."
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.
