W.P. Carey Closes $166M Industrial Sale-Leaseback in Tennessee
The tenant is a Canadian food-processing company.
W.P. Carey has completed a $166 million sale-leaseback of a food-processing facility in Cleveland, Tenn., a suburb of Chattanooga, Tenn., with Premium Brands, of Richmond, British Columbia.
The seller/tenant is a wholly owned subsidiary of Premium Brand Holdings Corp., a manufacturer and distributor of specialty food products.
The triple-net lease has a term of 25 years, with fixed annual rent increases.
The Class A facility totals more than 350,000 square feet and was completed in May. It features 40-foot clear heights, 27 dock doors and more than 250,000 square feet of cooler and freezer space. The facility is powered by 100 percent renewable energy and is expected to receive LEED Silver certification.
READ ALSO: Tariff Uncertainty Revs Up Demand for Manufacturing Space
The facility was purpose-built to provide a significant increase in production capacity to serve existing and new customers. W.P. Carey reported that the tenant chose the property’s location for its proximity to customers, access to skilled labor and highway accessibility.
A W.P. Carey spokesperson did not reply to Commercial Property Executive’s request for additional information.
A more cautious second half for SLBs?
In May, Daniel Levison of CRE Holdings LLC discussed for Commercial Property Executive’s readers some possible fallout for sale-leasebacks of the Trump administration’s tariff policies. For example, businesses in the current environment might seek to increase their liquidity, yet the uncertainty created by the tariffs might tend to make investors more cautious.
Last October, W.P. Carey acquired a 1 million-square-foot cross-dock industrial facility in Shelbyville, Ky., from Flint Development for $102 million. The Class A building is in I-64 Commerce Center, a two-building, 1.5 million-square-foot industrial campus that was delivered in 2023.
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