NEW YORK, NY – February 12, 2002 – W. P. Carey & Co. LLC (NYSE:WPC), a real estate investment banking firm and lessor of net leased corporate real estate, announced today that it has purchased and leased-backed four training and career schools from New Jersey-based Lincoln Technical Institute, Inc. (Lincoln) for approximately $10.1 million. Lincoln is a leader in the for-profit post secondary school industry that provides training and career preparation for recent high school graduates and older adults.
Under the terms of the sale-leaseback transaction, the four training and career centers will be leased to Lincoln under a 15-year bond-type net lease. The schools include a 31,000 square foot school in Philadelphia, Pennsylvania; a 26,000 square foot school in Allentown, Pennsylvania; a 51,000 square foot school in Union, New Jersey, and a 50,000 square foot school in Grand Prairie, Texas.
The schools were purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a publicly-held non-traded real estate investment trust (REIT) and member of the $3.5 billion W. P. Carey Group.
"Our prior experience in working with companies in the education sector, in addition to our understanding of Lincoln's long-term business strategy, enabled us to meet their specific financing needs," said Anne R. Coolidge, an Executive Director at W. P. Carey. "Through this transaction we were able to structure a single sale-leaseback for four facilities in three different states, which allowed Lincoln to obtain the capital it needed for future long-term growth."
With 23 schools located in 11 states, Lincoln offers more than 8,000 students vocational programs in automotive and HVAC repair through its Lincoln Technical Institute schools and information technology and computer-related education and training through its Cittone Institute and Computer-Ed Institute schools. Lincoln's personalized internship program allows its students the opportunity to work in their chosen field to gain valuable on-the-job training. As a result of these efforts, Lincoln's job placement rate for graduating students exceeds 89%. Lincoln's schools are approved or accredited by governmental and educational bodies including: The Accrediting Commission for Career Schools and Colleges of Technology (ACCSCT); The Accrediting Council for Independent Colleges and Schools (ACICS); State Departments of Education for every state in which Lincoln operates, and U.S. Title IV Loan and Grant Programs.
Dave Carney, Chairman and Chief Executive Officer of Lincoln Technical Institute, said, "This transaction will further Lincoln's aggressive growth plans, which in this past year included the addition of eleven new schools."
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 December 31, 2001, CPA®:14's diversified portfolio consisted of 111 properties net-leased to 55 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 property. 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.
