Citybizlist New York - December 22, 2010
Corporate Property Associates 17 - Global Inc., one of the publicly owned, non-traded real estate investment trusts (REIT) of W. P. Carey, has completed a $258 million acquisition of 29 automotive equipment distribution centers and four office buildings totaling 3,572,684 square feet.
The real estate investment trust has also entered into a total of four net lease agreements, two with Carquest Canada Ltd. and two with General Parts Inc. The tenants are affiliates of General Parts International, Inc., doing business as CARQUEST Auto Parts.
CARQUEST has guaranteed the obligations of the tenants under the leases.
The total cost of the purchase, including acquisition and transaction costs, was approximately $258 million. Three of the four leases have an initial term of 20 years and each provides for six five-year renewal options. The remaining lease has a term of five years. Additionally, each of the three 20-year term leases provides for stated rent increases every five years.
In connection with the acquisition of 30 of the distribution centers and office buildings, the Company obtained a 10-year, non-recourse mortgage financing of approximately $117 million bearing interest at a fixed rate of 5.17% per year.
At September 30, 2010, Corporate Property Associates 17 - Global Inc.'s portfolio was comprised of a full or partial ownership interest in 91 fully occupied properties, substantially all of which were triple-net leased to 27 tenants, and totaled approximately 10 million square feet.
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