W. P. Carey Inc., a real estate investment trust, announced that CPA:17 – Global, one of its publicly held non-traded REIT affiliates, has acquired a 274,000-square-foot industrial and office facility in Elk Grove Village. Approximately 239,000 square feet is leased to Shale-Inland Holdings LLC under a 15-year net lease, with the balance of the property leased to Material Sciences Corp. The purchase price was approximately $17 million.
Shale-Inland is an industrial supplier of products used in the transportation of water, food, energy and information to its end use, specializing in the surface quality of stainless steel, aluminum and carbon steel. Through 47 locations in North America, Shale-Inland delivers a broad spectrum of metal, pipes, valves or finished parts to its customers.
Material Sciences is a provider of material-based solutions for acoustical and coated applications. Material Sciences uses its expertise in materials, which it leverages through relationships and a network of partners, to solve customer-specific problems.
“Our ability to underwrite the Elk Grove property on the basis of the long-term lease with Shale-Inland demonstrates our in-house capabilities for identifying privately owned companies with strong sponsorship,” said W. P. Carey Managing Director and Co-Head of Global Investments Gino Sabatini. “By analyzing and evaluating the strength of current operating metrics and future expansion potential, we are able to ascertain that privately owned corporate tenants like Shale-Inland meet our established investment criteria. The Shale-Inland property, located in the Chicago metro area less than half a mile from O’Hare airport, has its own rail spur and four cranes operating within the facility, adding to its future marketability as a real estate asset from both an operational and accessibility standpoint over and above the value of the long-term lease currently in place with Shale-Inland.”
