NEW YORK, NY – January 31, 2001 – W. P. Carey & Co. LLC (NYSE:WPC), a leader in the ownership and net leasing of corporate properties, today announced that it has acquired land upon which it plans to build- a facility for Exodus Communications, Inc. ("Exodus"). Conroe Ventures LLC, a San Francisco-based real estate development company, is the project's developer. The facility, to be located in Lindon, Utah, was purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14). CPA®:14, a public non-traded real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group.
The 89,000 square foot facility will serve as the headquarters and testing center for Exodus Performance Labs, a division of Exodus. Exodus Performance Labs, which was acquired by Exodus in February 2000, provides e-business testing services to prevent a business' Web site from disfunctioning. Exodus Performance Labs is based in Lindon, Utah, part of the fast growing Provo/Orem submarket of the Salt Lake City metropolitan area. The project will consist of the construction of two 40,000 square foot buildings connected by a common area of 9,000 square feet on a 5.23-acre site. Under the terms of the sale-leaseback, the facility will be leased to Exodus under a 15-year bond-type net lease. The total cost of the facility is expected to be $13.2 million.
Exodus Communications, Inc., based in Santa Clara, California, is the nation's leading provider of internet data centers, network services and managed services for enterprises with Web-hosting needs. The company provides the infrastructure and connectivity required for a business or organization to outsource the design, development and maintenance of its Web site. According to Exodus, the company holds a 25 - 30% market share among medium- to large- business customers, and over 40% of the world's top 100 Web sites. One out of every three "mouse clicks" on the Internet travels to an Exodus-hosted website, and the company enjoys high name recognition and a solid reputation for delivering secure, well-managed services. Exodus's diverse customer base includes Yahoo!, Lycos, Virgin, PricewaterhouseCoopers, U.S. News & World Report, MSNBC, Google, PeopleSoft, Buzzsaw and General Electric International.
Commenting on the transaction, Edward V. LaPuma, Executive Director of W. P. Carey, stated, "This transaction demonstrates our ability to understand and analyze rapidly growing "new economy" companies such as Exodus that many traditional financing sources would find difficult to evaluate, and perhaps reluctant to finance given the current tightening of the credit markets. Sale-leaseback financing provides a viable and attractive source of funds. 'Monetizing' the physical assets of the company effectively provides liquidity for both current and future operations. It is particularly attractive for to-be-built facilities, as it provides single-source financing at a fixed rate."
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The firm and its affiliates is one of the largest lessors of net leased corporate real estate in the nation. W. P. Carey & Co. LLC (NYSE:WPC), the largest publicly traded limited liability company in the world, owns and manages over 42 million square feet of property in the USA and Europe. Additional information about W. P. Carey can be found on the company's Web site: www.wpcarey.com. CPA®:14 was created in 1997. More information on CPA®:14 can be found on the Company's Web site: www.cpa14.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.