W.P. Carey & Co. arranges sale leaseback transaction

Real Estate Weekly, Jan 16, 2002

W. P. Carey & Co. LLC, a leading real estate investment banking firm and lessor of net leased corporate real estate, announced that it has purchased and leased-backed three facilities from Dallas-based Builders FirstSource, Inc. (BFS), a leading distributor of lumber, engineered wood building components and other building materials to professional homebuilders nationwide, for approximately $13 million.

Under the terms of the sale-leaseback agreement, the facilities will be leased to BFS under a 15-year net lease. The properties consist of a 165,680-SF distribution facility in Cincinnati, Ohio, a 159,881-SF distribution facility in Elkwood, Virginia and a 63,700-SF distribution facility in Norcross, Georgia.

The facilities were purchased on behalf of Corporate Property Associates 14 Incorporated and Corporate Property Associates 15 Incorporated, members of the $3.5 billion W. P. Carey Group of non-traded real estate investment trusts (REITs). CPA 14 will own 60% ownership of the properties, while CPA 15 will own the remaining 40%.

In July, 1999 CPA 14 financed the development of a 112,000 SF regional manufacturing and warehouse distribution facility for BFS in Harrisburg, N.C.