WP Carey acquires $19.7 M in property from Gerber Scientific

Real Estate Weekly, August 22, 2001

W. P. Carey & Co. LLC, a leading real estate investment banking firm and lessor of net leased corporate properties, announced it has acquired and leased-back three properties belonging to Gerber Scientific Inc. for $19.7 million.

Under the terms of the sale-leaseback transaction, the properties, which are located in South Windsor and Manchester, Connecticut, will be leased to Gerber Scientific as part of a 17-year bond-type net lease with two additional ten-year options.

The sites currently serve as Gerber Scientific's corporate headquarters and primary manufacturing/distribution space for two of its subsidiaries: Gerber Coburn Optical, Inc. and Gerber Scientific Products, Inc.

They are located in the greater Hartford, Connecticut area, just off Interstate 84, and include: a 194,000-SF single story office/light assembly building on 13.74 acres at 83 Gerber Road West in South Windsor; a 60,000-SF single story office and industrial structure on 5.18 acres at 55 Gerber Road West in South Windsor; and a 93,500-SF single story office and industrial facility on 9.36 acres at 151 Batson Drive in Manchester.

The facilities were purchased on behalf of Corporate Property Associates 14 Incorporated, a member of the W. P. Carey Group.

Edward V. LaPuma, executive director of W. P. Carey, said, "W. P. Carey and its affiliate, target middle-market tenants and private companies with an eye toward providing creative financing solutions to meet their corporate real estate needs. When a company removes real estate from its balance sheet, it is then able to reallocate this much-needed capital to pay down debt, or finance other corporate initiatives.

"After careful credit analysis and working closely with Gerber Scientific management, we were able to tailor this transaction to meet Gerber's specific needs. The sale-leaseback arrangement of these properties will enhance [CPA.sup.a]: 14's already diverse portfolio and provide further stability," concluded LaPuma.

"A sale-leaseback transaction simply converts real estate into cash, which can then be more effectively used," stated Lynn M. Wytas, Treasurer, Gerber Scientific Inc.