Corporate Property Associates 14 Acquires To Be Built Distribution Center Leased To Builders' Supply & Lumber
W. P. Carey Structures Sale-Leaseback to Fund Development of Charlotte Facility
NEW YORK, NY – July 1, 1999 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced that it has completed the acquisition of the site for, and will finance the development of, Builders’ Supply & Lumber Co., Inc.’s regional manufacturing and warehouse distribution facility.
The acquisition was made on behalf of Corporate Property Associates 14 (CPA®:14), a public non-traded real estate investment trust (REIT) and a member of the $2.5 billion W. P. Carey Group.
The facility will consist of a 112,000 square foot office/warehouse building and two separate 9,600 square foot storage units located on a 54 acre site in Harrisburg, North Carolina immediately northeast of Charlotte. Superbly situated, the location has access to two main highway systems, I-77 and I-85 linking it to Columbia, South Carolina and Virginia; and Atlanta and the Triad of North Carolina, respectively. In addition the site has immediate access to a railroad spur and the I-485 interchange with Highway 49. The facilities will be leased to Builders’ Supply & Lumber Co., Inc. (BSL) for 20 years on a triple net basis. The purchase price of the site and to-be-built facilities was approximately $7.8 million.
Builders’ Supply & Lumber is a principal operating subsidiary of BSL Holdings, which is owned by Stonegate Resources LLC. Stonegate through its operating subsidiaries, Builders’ Supply & Lumber Co., Inc., Pelican Companies Inc. and Western Building Products is the third largest professional distributor of building supplies. Its operations are focused on serving large production home builders in major metropolitan markets. BSL sells doors, windows, trim and millwork-related products used primarily for new home construction by professional production home contractors.
W. P. Carey Senior Vice President and CPA®:14 Portfolio Manager Gordon J. Whiting noted, "As a leading distributor of lumber and related products BSL has exhibited strong operating trends by virtue of its ability to consistently grow both revenues and operating earnings. Because the Charlotte Region is BSL’s most profitable region, the distribution center is a key facility that will play an important role in the company’s operation. In addition the generic nature of the facility and its attractive location in proximity to downtown Charlotte, major highways, rail transportation and the airport will assure its value and the potential for long term income generation for our investors. It is this combination of attributes that make it a particularly attractive long term investment, consistent with our objectives for the CPA®:14 portfolio."
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.
