New York — CPA:17 – Global, a non-traded managed REIT of New York-based W.P. Carey Inc. (NYSE: WPC), has purchased a portfolio of six Midwestern net lease properties leased to an affiliate of The Bon-Ton Stores Inc. (Bon-Ton) for approximately $88 million.
Three of the department store properties are located in Milwaukee, Wis., and the remaining three are located in Green Bay, Wis.; Fargo, N.D.; and Joliet, Ill. Each of the facilities is leased to Bon-Ton for 20 years.
“Bon-Ton has built a strong track record of tenancy with W. P. Carey since our first transaction 18 years ago,” says W.P. Carey Managing Director Gino Sabatini. “Given the criticality of these retail stores to Bon-Ton’s ongoing operations, an attractive yield on the investment and the inclusion of annual consumer price index adjustments, we believe the investment is a valuable addition to the CPA:17 – Global portfolio.”
Bon-Ton operates department stores offering apparel and accessories for women, men and children, as well as cosmetics, home furnishings, footwear and other goods. The company operates 270 stores, including nine furniture galleries and four clearance centers in 26 states in the Northeast, Midwest and upper Great Plains.
Each store in the transaction anchors a mall or lifestyle center and is ranked in the top 25 percent of all Bon-Ton stores in terms of total sales.
Bon-Ton will use the sale proceeds to repay an existing mortgage on the properties acquired. The purchase price included the acquisition fees.
Founded in 1973, W. P. Carey is a global net-lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions for companies worldwide. As of March 31, 2015, the company had an enterprise value of approximately $11.2 billion.
W.P. Carey’s stock price closed at $59.20 per share on Friday, June 26, down from $64.24 a year ago.
— Scott Reid