WP Carey has acquired a recently built 779,000 s / f distribution facility near the Canadian border in New York State as part of a $ 137 million industrial investment.
The leading net-lease REIT, which specializes in corporate sale-leasebacks, build-to-suits, and the acquisition of single-tenant net-lease properties, announced three industrial companies covering approximately 2 million square feet. The investments include five business-critical properties that have been leased to industry-leading tenants net, bringing the year-to-date investment to approximately $ 900 million with a weighted average lease term of approximately 22 years.
The investments include the sale-lease-back sale of the Orgill facility at 1 Atlas Drive in Rome, NY, for $ 45 million. As the world’s largest independent hardware distributor and existing tenant of WP Carey, Orgill operates the facility as the primary distribution center for the Northeast.
It was built on land that once housed air force bases to meet growing sales and provide faster, more efficient service across the region.
Located off NY49 near I-90, it contains significant Orgill-owned equipment, including extensive shelving systems with automated sorting capabilities.
Since WP Carey became a tenant in 2018, WP Carey has partnered with Orgill on four acquisitions and two property expansions, and now owns four of Orgill’s seven US distribution centers. The facility is rented triple-net with fixed rent increases for a period of 26 years.
The investment also included a $ 49 million sale-lease-back for a 703,000 s / Class A logistics facility in Alabama, net to JOANN, the US sewing and fabric category leader and one of the fastest growing competitor in the arts and crafts industry. It was built in 2005 and supplies more than a third of its nearly 900 retail locations across Germany. JOANN has rented the system triple-net for a period of 20 years with fixed annual rent increases.
WP Carey also spent $ 43 million on the sale-lease-back of a logistics portfolio of three properties for a total of 497,000 s / f that was rented net to a North American manufacturer of home, industrial and leisure products. The properties encompass the company’s main distribution centers, including a portion of which its headquarters are located, and are located in the core logistics markets of Chicago and Toronto. Two of the facilities are in close proximity to O’Hare International Airport – in the O’Hare and North Cook Counties submarkets, which are among the strongest industrial submarkets in the United States – while the third is in an industrial suburb of Toronto with easy access to the CBD as well as to the main roads, airports, railways and shipping ports. The portfolio is leased through two master leases denominated in USD by country for a period of 15 years with fixed annual rent increases.
Gino Sabatini, Head of Investments, WP Carey said, “These industrial investments demonstrate our ability to differentiate ourselves in the marketplace as a trusted and reliable capital partner with the experience necessary to efficiently conduct high quality business. We are pleased to have worked with both new and existing tenants on these sale leasebacks so that they can convert their properties into working capital to meet their business goals. ”
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