NEW YORK, NY - February 16, 2005 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it originated and structured a $54 million first mortgage loan for affiliates of Rosemont, Illinois based Reyes Holdings, L.L.C., one of the largest privately held food and beverage distributors in North America. The mortgage is secured by a beer distribution facility and three cold storage facilities operated by subsidiaries of Reyes Holdings L.L.C. W. P. Carey retained the $12.8 million subordinated “B-Note” position in the mortgage, while the $41.2 million senior position was purchased by another firm. The 10-year fixed rate first mortgage loan is secured by a beer distribution facility in Gardena, California and three cold storage facilities located in Rogers, Minnesota, Mt. Pleasant, Pennsylvania and Oak Creek, Wisconsin, totaling 837,000 square feet.
The transaction was completed on behalf of Corporate Property Associates 16 – Global Incorporated, a member of the $7 billion W. P. Carey Group of income generating, publicly held, non-traded real estate investment trusts (REITs).
Teddy Kaplan, Vice President of W. P. Carey, said, “This transaction reflects our continued efforts to structure unique financing solutions for high quality companies seeking to maximize the capital embedded in their real estate assets. We are pleased with its successful completion and anticipate similar transactions in the future as more companies learn about W. P. Carey’s broadening finance capabilities.”
REYES HOLDINGS, L.L.C.
Reyes Holdings, L.L.C. distributes high quality food and beverage products throughout North, Central and South America. Reyes Holdings operates the largest beer distribution business in the United States. It also owns The Martin Brower Company, L.L.C., a specialized quick service restaurant distribution business that operates in seven countries, and MBX Logistics, L.L.C., a managed supply chain logistics business operating in the United States and Canada. Forbes recently ranked Reyes Holdings as the 30th largest privately held company in the United States, and Crain’s Chicago Business marks it as the 3rd largest privately held company in the Chicago area. www.reyesholdings.com
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC specializes in helping companies and private equity firms realize the capital tied up in their real estate assets. Whether used for debt reduction, buyouts, add-on acquisitions, recapitalizations or growth, sale-leaseback financing provides access to 100% of the real estate's value, while maintaining complete operational control. Acting as principal in transactions from $5 million to $500 million, W. P. Carey and its affiliates have committed over $2 billion in the last two years and now manage approximately $7 billion in assets.. www.wpcarey.com/finance
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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.