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W. P. Carey Announces Acquisition of Houston CBD Office Tower
By: Marketwire .
Nov. 20, 2012 05:47 PM
NEW YORK, NY -- (Marketwire) -- 11/20/12 -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust ("REIT"), announced today that CPA®:17 - Global, one of its publicly held non-traded REIT affiliates, has acquired an office tower in Houston, Texas. The property is primarily leased to Kellogg Brown & Root, Inc. ("KBR"), which occupies approximately 900,000 square feet under a net lease with a remaining term of approximately 18 years. The 1,047,748 square foot building is 99.8% leased, with the majority leased by KBR, and the balance occupied by a mixture of office and retail tenants. In addition to the 40 story office tower, the acquisition includes a 1,499 stall parking garage.
KBR (NYSE: KBR) is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets.
Commenting on the acquisition, W. P. Carey Executive Director Chad Edmonson noted, "We are extremely excited to work with a great tenant like KBR as well as complete yet another transaction with an affiliate of Brookfield. In addition, as an important location for KBR it meets our criteria of acquiring critical facilities leased to established corporate tenants on a long term basis. The property's prime location in Houston's CBD was also a positive factor in our overall analysis of the investment."
Dennis Friedrich, chief executive officer of Brookfield Office Properties, noted, "Given their long term investment outlook and appreciation of the long term lease with KBR, W. P. Carey was the ideal purchaser for this asset. As they have on past deals with Brookfield affiliates, they were able to turn the transaction around quickly and meet our critical timing and other closing requirements."
Reed Smith LLP represented CPA®:17 - Global as general real estate and transaction counsel in connection with the closing.
Allied Advisors represented CPA®:17 - Global in securing acquisition financing and also represented the seller with respect to the disposition of the property.
W. P. Carey Inc.
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.
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