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W. P. Carey REIT Affiliate Invests $70M in 6 New York Self-Storage Facilities

May 3, 2016

May 2, 2016 | Inside Self Storage

CPA:17 – Global, a publicly held, non-traded real estate investment trust (REIT) managed by global net-lease REIT W. P. Carey Inc., recently acquired a stake in six Secure Self Storage facilities in New York. The REIT paid a total of $69.9 million in three separate deals for investments in the Bronx, Brooklyn and Queens, according to the source. The properties include:

  • 4268 Third Ave., Bronx
  • 1725 West Farms Road, Bronx
  • 1037 Zerega Ave., Bronx
  • 1205 Flatlands Ave., Brooklyn
  • 1545 Schaeffer St., Queens

The deals include a 45 percent interest in the Flatlands Avenue, Schaeffer Street, West Farms Road and Zerega Avenue properties, acquired for $43.7 million from private-equity fund City Investment Fund and operated by real estate firm Fisher Bros. It also acquired an additional 15 percent in the same facilities from TVG Partners for $20.9 million, the source reported. In a third transaction, the REIT acquired a 45 percent interest in the Third Avenue facility from City Investment Fund for $3.55 million.

The deals will expand W. P. Carey’s footprint in New York. The company previously owned two New York City properties, according to the source.

W. P. Carey owns 189 self-storage facilities in 28 states. The company announced last fall that it’s evaluating whether it should break into three separate businesses. The new structure would likely include a U.S. net-lease REIT that would own and manage domestic commercial properties, an international net-lease entity, and an asset-management company that would create non-traded REITs and other alternative investment products.

W.P. Carey is a New York-based investment-management company that oversees a global investment portfolio and has an enterprise value of approximately $10.4 billion. It manages a series of non-traded REITs with assets under management of approximately $11 billion. It provides companies worldwide with long-term sale leaseback and build-to-suit financing, and engages in other types of real estate-related investment.

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.