W. P. Carey Group Acquires Two Office/Manufacturing Facilities Owned By Stellex Technologies, Inc.
$19.3 Million Sale/Leaseback of Aerospace Company’s Facilities in New York and California
NEW YORK, NY – March 7, 2000 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, today announced that it has acquired on behalf of Corporate Property Associates 14 (CPA®:14), two office/manufacturing facilities owned by Stellex Technologies, Inc. CPA®:14, a private real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group. Stellex Technologies, Inc. is a leading manufacturer of highly engineered subsystems and components for the aerospace, defense, and space industries.
The properties, located in North Amityville, New York and Valencia, California, are occupied by two subsidiaries of Stellex Technologies, Inc., the lease guarantor. The 228,000 square foot Amityville, NY facility is leased and occupied by Monitor Aerospace Corporation; the 54,000 square foot Valencia, CA facility is leased and occupied by Paragon Precision Products, Inc. The facilities will be leased to Monitor and Paragon under separate 20-year net leases to be followed by two, ten-year renewal options.
Monitor’s office and manufacturing operations are located in the newly acquired 228,000 square foot facility, located on a 17.5 acre site in the New Horizons Industrial Park in North Amityville on New York’s Long Island. Monitor primarily operates under long-term contracts and is the sole supplier of the majority of large titanium structural components for military and commercial jet aircraft. The finished components are sold directly to OEMs such as Boeing, B.F. Goodrich, Northrop and Grumman, Pratt & Whitney and the U.S. Department of Defense, as well as to major large system subcontractors.
Paragon’s 54,000 square foot facility, acquired by CPA®:14, is located on a 2.7 acre site in Valencia in California’s rapidly growing Santa Clarita Valley. Paragon is a preferred supplier, often as sole or primary source, on a variety of precision engine components made of standard and exotic alloys (such as turbo machinery and turbine components), to OEMs including Allied Signal, Inc., the Aerojet division of GenCorp., Inc., Raytheon and Boeing.
Commenting on the transaction, W. P. Carey First Vice President W. Sean Sovak stated, "The transaction with Stellex Technologies, Inc. is another example of W. P. Carey’s ability to meet the particular financing needs of companies in a wide variety of industries. We were able to structure one sale/leaseback transaction for both properties, enabling Stellex to free up 100% of the value of the assets, which can in turn be used to pay down indebtedness or fund capital expenditures."
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.
Stellex Technologies is a leading provider of highly engineered subsystems and components for the aerospace, defense, and space industries. Stellex Technologies operates through two primary subsidiaries, Stellex Electronics and Stellex Aerostructures. Stellex Electronics is comprised of two subsidiaries, Microwave and Phoenix. Microwave is a worldwide leader in the design, manufacture, and marketing of fully integrated, proprietary microwave electronic subsystems for radar-guided tactical missile systems and a broad line of high frequency and microwave frequency single function modules. Phoenix is a leading supplier of RF and Microwave components, such as ultra linear power amplifiers for both commercial and military applications. Stellex Aerostructures is comprised of three subsidiaries, Aerospace, Monitor, and Precision Machining. Aerospace is involved primarily in the precision machining of turbomachinery components, aircraft hinges, and other structural components for the aerospace and space industries. Monitor and Precision Machining are leaders in the manufacturing of large complex machined parts and structural sub-assembly components and provide various consulting services to the aerospace industry.
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.
