Corporate Property Associates 14 Acquires Four Properties Owned By Atrium Companies, Inc.
$30 Million Sale-Leaseback Transaction Allows for the Acquisition of Three Existing Facilities, Construction of a Fourth
NEW YORK, NY – January 7, 2000 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced today that it has closed on the acquisition of four properties, located in Texas, 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 properties are leased to Atrium Companies, Inc., one of the nation's largest manufacturers and distributors of wood, aluminum, and vinyl window frames and doors. The purchase price of the facilities was approximately $30 million and includes manufacturing, warehouse and distribution facilities located in Dallas and Greenville, Texas, as well as a to-be built facility in Wylie, Texas. The existing facilities will be leased back to Atrium Companies under a twenty year, eight month triple net lease, while the Wylie facility will be subject to a twenty year triple net lease beginning in August 2000.
Commenting on the transaction, W. P. Carey First Vice President, Edward V. LaPuma, noted, "We were pleased to be able to fashion this financing to meet Atrium's particular needs. Our sale-leaseback is structured to allow Atrium to access cash tied up in its Greenville facilities, as well as to obtain the capital necessary for constructing their new facility in Wylie, Texas. By combining the acquisition of the existing properties and the financing for the to-be-built facility, Atrium was able to avoid the additional transaction costs associated with a stand-alone construction loan for the new facility. At the same time, it was able to access long-term capital currently rather than being subject to future uncertainties in the financing markets. The unique aspects of this transaction demonstrate how our proven ability to provide creative financing solutions enables us to meet the specific needs of corporate tenants."
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.
