NEW YORK, NY – June 20, 2001 – W. P. Carey & Co. LLC (NYSE:WPC), a leading real estate investment banking firm and lessor of net leased corporate properties, announced today that it has entered into a joint venture with J.A. Billipp Company, to acquire the headquarters and distribution facility of McCoy Workplace Solutions, L.P. (McCoy), the largest office furniture and commercial floor covering company in Houston, Texas, for approximately $5.5 million. J. A. Billipp Company is a commercial and industrial real estate development and investment company also located in Houston.
The 140,030 square foot facility was purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a privately held real estate investment trust (REIT) managed by W. P. Carey & Co. LLC. CPA®:14 invests in single-tenant commercial properties. It is a member of the $3 billion W. P. Carey Group and as of March 31, 2001 had total assets of $707 million.
Edward V. LaPuma, Executive Director and acquisitions officer of W. P. Carey & Co. said, "This transaction demonstrates W. P. Carey's continued ability to work closely with established regional real estate development and investment companies to identify and complete acquisition opportunities. This deal will provide additional capital to meet McCoy's needs and will be another great property in the CPA®:14 portfolio."
McCoy, founded in 1972 as a furniture installation service company, continues to offer corporations a "one-stop-shop" service by providing companies with the resources needed to furnish their business. McCoy provides interior office design services, new furniture/workstation sales and installation, corporate relocation services, office furniture maintenance, refurbishment and storage facilities, as well as flexible furniture rental programs.
As of March 31, 2001, CPA®:14 had a diversified portfolio that included 66 properties, net-leased to 44 tenants throughout the United States and Europe. These properties are subject to long-term, triple net leases in which the tenants bear the responsibility for maintaining the premises, insuring the buildings and paying real estate taxes. W. P. Carey & Co. LLC and its affiliate, CPA®:14, target middle-market tenants and private companies with an eye towards providing creative financing solutions to meet their corporate real estate needs. W. P. Carey has found that when a company removes real estate from its balance sheet the company is then able to re-deploy this much-needed capital to pay down debt, or finance other corporate initiatives.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through the corporate net lease, or sale-leaseback structure. The firm and its affiliates continue to be leading lessors of net leased corporate real estate. W. P. Carey & Co. LLC (NYSE:WPC), the largest publicly traded limited liability company in the world, owns and manages more than 45 million square feet of property in the United States and Europe. The firm is headquartered in Manhattan and has offices in London and Paris. Additional information on W. P. Carey can be found on the firm's website: www.wpcarey.com
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company's filings with the Securities and Exchange Commission.