NEW YORK, NY – September 25, 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 purchased and leased-back the United States distribution center of New Creative Enterprises, Inc. (NCE) for approximately $14.8 million.
Under the terms of the sale-leaseback transaction, the warehouse and distribution facility, which is located in the Milford Commerce Park in Milford, Ohio, east of the Cincinnati central business district, will be leased to NCE under a 20-year bond-type net lease with five additional five-year renewal options. The one-story facility was originally constructed in 1996 and later expanded in 1998. It consists of 397,000 square feet of cross-deck warehouse space and 40,000 square feet of office space.
The facilities were purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a member of the W. P. Carey Group.
Gordon J. Whiting, Executive Director of W. P. Carey and President of CPA®:14, said, "This transaction is a great example of our ability to successfully close transactions in any type of economic environment by analyzing the strengths and risks of a company's business and structuring a deal that meets their individual needs. By working with private equity firms, such as Fenway and Blue Capital, we are able to provide creative real estate financing solutions for their portfolio companies."
NCE is a wholly owned subsidiary of DCI Holdings, Inc., a leading designer, importer and distributor of home décor products, giftware and artificial flowers. Founded in 1980, NCE designs home décor products and giftware for both indoor and outdoor display including decorative flags, hand-painted home accents and gifts, windchimes, lawn and garden decor, holiday items, and other home accessories. The Company sells its products through a diversified customer base of more than 20,000 independent domestic retailers including retail card shops, gift shops and specialty stores, as well as department stores and mass merchandisers.
NCE was acquired by the private equity firms Fenway Partners, Inc. and Blue Capital Management, LLC in 1998. The following year, the investment group formed DCIH as the holding company and parent company to NCE and sister company DCI Floral.
CPA®:14 is a public, non-traded real estate investment trust (REIT) that invests in single-tenant commercial properties. These properties are subject to long-term, triple-net leases in which the tenants bear responsibility for maintaining the premises, insuring the buildings and paying real estate taxes. As of June 30, 2001, the trust's diversified portfolio contained 73 properties net-leased to 45 tenants throughout the United States with total assets of more than $780 million.
W. P. Carey & Co. LLC and its affiliates specialize in corporate real estate financing through the corporate net lease, or sale-leaseback structure. The largest publicly traded limited-liability company in the world, W. P. Carey was founded in 1973, and owns and/or manages more than 46 million square feet of property in the United States and Europe. The $3 billion firm is headquartered in Manhattan and has offices in London and Paris. Additional information is available 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.