W. P. Carey Inc., a global net lease real estate investment trust specializing in corporate sale-leaseback and build-to-suit financing and the acquisition of single-tenant net lease properties, announced that CPA:18 – Global, one of its managed non-traded REITs, acquired a 550,000-square-foot corporate headquarters and industrial printing facility for approximately $23 million in Menomonee Falls, Wisconsin.
The facility, which is 15 miles northwest of Milwaukee, is triple-net leased for 20 years to Arandell Corporation. According to the firm, the property has served as Arandell's corporate headquarters and sole printing facility since 1981. Over the last 35 years, the company has invested in multiple expansions to the facility for its warehousing and printing operations. The facility is currently one of the largest web offset printing and binding facilities in North America. The triple-net lease is for 20 years with annual CPI escalations.
W. P. Carey Vice President Zachary Pasanen commented: "The acquisition of the Arandell facility further demonstrates the strength of our corporate financing expertise and our ability to provide liquidity to privately held companies. In structuring the transaction, we incorporated a per square foot rental rate consistent with the current market while also providing an attractive yield to CPA®:18 – Global. As a result, we were able to achieve our objective of generating solid near-term cash flows while supporting longer-term residual value."
Arandell President and CEO Bradley J. Hoffman added: "We are pleased to have closed this transaction with W. P. Carey. Their financial and real estate expertise enabled us to reach an agreement allowing us to unlock the value of certain assets while maintaining long-term operating control of the facility. Given W. P. Carey's reputation as a well-capitalized, long-term net lease investor with strong experience working with privately owned companies, we viewed CPA®:18 – Global as an ideal partner for monetizing this asset."