AUSTIN, TEXAS — W. P. Carey Inc. (NYSE: WPC), a publicly traded REIT that owns and manages an investment portfolio totaling approximately $15.4 billion, has acquired the State Farm Operation Center in Austin from State Farm Mutual Automobile Insurance Co. for $110 million, plus transaction costs.
The 448,898-square-foot property is leased to State Farm for an initial term of 15 years. The property has served as the State Farm Operation Center since 1994.
The facility is situated on 83.5 acres in AmberOaks Corporate Center, a 263-acre master-planned office park 10 miles northwest of Austin’s central business district.
W. P. Carey purchased the property through two of its publicly held, non-traded REIT affiliates — CPA:17 – Global and CPA:18 – Global. The acquisition is the first made by CPA:18 – Global.
“In addition to being a Class A office building with a prime location in one of the nation's top performing metro areas, the property is leased to State Farm, which is an AA credit rated tenant,” says Gino Sabatini, managing director and co-head of global investments at W. P. Carey. “Given these characteristics, the asset is a strong addition to the portfolios of CPA:17 – Global and CPA:18 – Global, consistent with our strategy of generating stable cash flow and long-term value for investors.”
W. P. Carey provides sale-leaseback and build-to-suit financing and is also the largest owner/manager of net leased real estate, according to a statement from the company.
W. P. Carey’s stock price closed Tuesday at $66.37 per share, up from trading at $46.81 per share this time last year.
— John Nelson