CPA:18 — Global Closes $38.5 Million Retail Portfolio Mezzanine Financing
Loan supported by portfolio of retail assets across Minnesota, Wisconsin and Iowa leased to established tenant
Nov 23, 2016, 07:30 ET
NEW YORK, Nov. 23, 2016 /PRNewswire/ — CPA®:18 – Global, a non-traded real estate investment trust (REIT) focused on investing in income-producing commercial properties and real estate-related assets, has closed a $38.5 million acquisition of the mezzanine tranche for the financing of a portfolio of retail stores across Minnesota, Wisconsin and Iowa. The loan is subordinate to a senior loan from Credit Suisse and Wells Fargo and is collateralized by a pledge of equity interests from the borrower.
- Well-known tenant with strong business model: The tenant of the stores, Mills Fleet Farms (“Mills Fleet“), is a full-service supplier of high-quality merchandise for life, work, home and recreational needs. It has operated in the Midwest for over 60 years and has created a strong brand among its customers in the region, evidenced by its steady growth and operational stability.
- Flexible loan term: The initial term of the agreement is two years with three, one-year extension options at the discretion of the borrower.
- Efficient capital structure: The combination of senior financing and mezzanine loan allows the borrower and lender to structure efficient, long-term financing to meet their business objectives.
Gino Sabatini, W. P. Carey Managing Director, said: “This investment represented an opportunity to secure attractive returns collateralized by a portfolio of mission-critical real estate. By diversifying CPA®:18 – Global’s portfolio with a range of high-quality income-generating investments the transaction is consistent with our strategy of providing attractive, stable cash-flows backed by a combination of proven operating entities and solid real estate. Our opportunistic approach, ability to work with private equity firms and loan originators and access to capital makes us well-positioned to structure these types of investments.”
About CPA®:18 – Global
CPA®:18 – Global is a publicly registered non-traded REIT formed to invest in a diversified portfolio of income-producing commercial properties and real estate-related assets. Affiliates of W. P. Carey Inc. advise CPA®:18 – Global and manage its overall portfolio. http://www.cpa18global.com/
This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Sabatini are examples of forward looking statements. A number of factors could cause CPA®:18 – Global’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 CPA®:18 – Global, reference is made to its filings with the Securities and Exchange Commission. Statements about past performance, which are presented for informational purposes only, are not a guarantee of future results.
W. P. Carey Inc.
Ross & Lawrence
SOURCE CPA:18 – Global
Blue Vault has been an important partner to Geneos in providing us and our advisors pertinent information about non-traded products and the industry as a whole. The annual BD Summit is a valuable due diligence experience for any broker dealer."