W. P. Carey Closes on Sale Leaseback of 24-Hour Fitness Center in Salt Lake City, Utah
Sale-Leaseback Transaction Facilitates Company’s Expansion Program
NEW YORK, NY – January 13, 2000 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced that it has acquired the Salt Lake City facility of 24-Hour Fitness on behalf of Corporate Property Associates 14 (CPA®:14). CPA®:14, a private real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group. The property, located in the Sugarhouse District, one of Salt Lake City’s main residential and retail areas is leased to 24-Hour fitness under a 20-year triple net lease. The purchase price was approximately $5.5 million.
24-Hour fitness is an affiliate of Fitness Holdings, a leading owner and operator of fitness centers in the U.S., Europe and Asia. Fitness Holdings currently operates 367 fitness centers, and has in excess of 2.4 million members world wide. It is the second largest owner and operator of fitness centers in both the United States and Europe, and is a leading owner/operator of centers in key Asian markets.
Commenting on the investment, W. P. Carey First Vice President Edward V. LaPuma noted, "The transaction with Fitness Holdings exemplifies how W. P. Carey is able to assist growing companies in effectively redeploying capital from real estate assets in order to finance their expansion programs. The use of sale leaseback financing as a strategy to fund future growth is particularly suited to companies such as Fitness Holdings whose operations are real estate intensive and require multiple physical locations. By freeing up 100% of the value of their real estate assets, Fitness Holdings benefits from substantially more funding than that provided by traditional mortgage financing and can therefore accelerate its expansion program."
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.
