NEW YORK, NY - April 11, 2001 - W. P. Carey & Co. LLC (NYSE:WPC), a leader in the ownership and net leasing of corporate properties, announced today that it has closed on the acquisition of four facilities from Gibson Guitar Corporation ("Gibson"). The properties were 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 $3 billion W. P. Carey Group.
The sale-leaseback transaction includes three sites: one in Nashville, TN (includes a 33,800 square foot headquarters/office and a 176,300 square foot manufacturing facility to be expanded by 60,000 square feet); one in Elgin, IL (a 39,000 square foot manufacturing and distribution facility); and one in Bozeman, MT (a 19,000 square foot manufacturing facility). The 33,800 square foot headquarters/office building located in Nashville will be managed by The Mathews Company. The lease on this facility is structured separately as a joint venture between CPA®:14 and The Mathews Company, one of Nashville's premier real estate principal, development, and management companies, with CPA®:14 contributing 80% of the equity and The Mathews Company contributing the remaining 20%. Gibson will lease the four facilities for an initial term of 20-years under a triple net lease. The total purchase price of the facilities was approximately $22 million.
Founded in 1894, Gibson Guitar is one of the world's oldest and most widely recognized musical instrument brands. The Company's product line includes acoustic and electric guitars and basses, mandolins, drums, keyboards, PA systems and electronic components, and fretted instrument accessories. Gibson's customers include orchestras and musicians across a wide range of styles, including jazz, country, blues and rock.
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 44 million square feet of property in the USA and Europe. Additional information about W. P. Carey is available on the company's Web site: www.wpcarey.com. Additional information about 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.