The global net-lease REIT specializing in corporate sale-leaseback financing, build-to-suit construction financing and the acquisition of single-tenant net-lease properties, W.P. Carey Inc., has acquired, from Exeter Property Group, a 824,624 square foot distribution facility for a total acquisition price of approximately $48 million.
The facility is located in University Park, Illinois outside of Chicago and is leased to a subsidiary of The J.M. Smucker Company (“Smuckers”) for a period of 9.5 years.
W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini: “This investment represented an opportunity to acquire a new Class-A logistics facility that serves as a primary distribution center for all of Smuckers’ varied products. In addition, the transaction demonstrates W. P. Carey’s ability to work with a variety of sellers, including those whose investment time frame is shorter and who are predominantly IRR-focused. Because our strategy is to generate income and cash flow over the longer term, we are an attractive source of liquidity to owners, developers and investors with shorter term investment horizons, as was the case with the Exeter Property Group.”
Key Facts
High credit parent: The tenant is a subsidiary of Smuckers, a market leader in consumer staples such as packaged coffee, fruit spreads and peanut butter. Smuckers is rated A3 and BBB+ by Moody’s and Standard & Poor’s, respectively, and has a market capitalization of approximately $10.2 billion.
Critical facility: The original 575,024 square foot facility was built in 2008. In 2013, Exeter expanded the facility by 249,600 square feet to facilitate the distribution of coffee under the Folgers brand, which Smuckers acquired in 2008. The facility is one of only six distribution centers operated by Smuckers in the U.S. and is utilized for each of its diverse range of products.
Well-located Class-A distribution center: The modern, easily-devisable Class-A distribution center with 32-foot clear height is located in Chicago’s solid South Suburban submarket.
