NEW YORK, NY – June 25, 2002 – Investment banking firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it will provide Allentown Business School, Ltd., an Allentown, PA-based postsecondary educational institution, $18.5 million in financing to construct a new modern campus facility in Center Valley, PA. Mortenson Development, Inc., a leading development firm headquartered in Minneapolis, MN, will build the facility.
Under the terms of the transaction, the facility, which will be located in the Stabler Corporate Center, will be leased under a 20-year bond-type net lease followed by two ten-year renewal options. The three-story, 95,000 square foot facility is scheduled for completion in June 2003. Once completed, the facility will include more than 40 classrooms, five networked computer laboratories, two art studios, four Macintosh labs, five PC labs, a medical lab, a photo and video studio, a learning resource center equipped with personal computers and Internet access for student use, a student lounge, a bookstore, and offices for faculty, financial aid and administration. It will also provide ample parking for its faculty, staff and students. The facility will be funded on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a member of the $3.5 billion W. P. Carey Group of publicly held non-traded real estate investment trusts (REITs).
"Sale-leasebacks offer alternative financing for high-growth companies seeking to aggressively invest their capital in other growth initiatives," said Benjamin P. Harris, Director at W. P. Carey. "We have seen this trend throughout the country and across all industries, as companies realize the benefits of turning their under-utilized assets into working capital. In short, a sale-leaseback offers companies an opportunity make their real estate work for them."
"We are pleased to partner with W. P. Carey in creating this campus facility which will enhance our presence in the higher education market," said Virginia Carpenter, President of Allentown Business School. "This long-term lease demonstrates our ongoing commitment to the students, faculty and staff of Allentown Business School, as well as to the community which has been home to the school for more than 130 years."
Currently Allentown Business School offers degree programs in Accounting, Management/Marketing, Travel/Tourism Management, Office Administration, Computer Programming, Computer Networking, Web Administration, and Visual Communications. It also offers a variety of diploma programs. For 133 years Allentown Business School has excelled in providing career-oriented education to students and professionals seeking to establish and advance their careers. The school is accredited by the Accrediting Council for Independent Colleges and Schools and is licensed to grant the Associate Degree by the Pennsylvania State Board of Private Licensed Schools, Pennsylvania Department of Education. The school has a total enrollment of 1,400 students. For more information, visit www.ChooseABS.com.
CPA®:14 invests in single-tenant commercial properties which 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 March 31, 2002, CPA®:14's diversified portfolio consisted of 128 properties net-leased to 61 tenants throughout the United States and Europe comprising of more than 20 million square feet.
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 leading lessors of net-leased corporate real estate. The largest publicly traded limited liability company in the world, W. P. Carey owns and/or manages more than 450 commercial and industrial properties throughout the United States and Europe comprised of more than 55 million square feet of property.
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.
