Media packaging giant Nexpak Corp. has sold its Duluth, Ga., facility for about $13.6 million and leased back the 221,000-square-foot plant.
W.P. Carey & Co. LLC of New York said May 29 it had completed the deal on behalf of Corporate Property Associates 14 Inc., a real-estate investment trust focused on single-tenant commercial sites. W.P. Carey manages and advises the REIT.
The transaction enables Nexpak's investors to redeploy their capital and remove debt from the balance sheet, said Executive Director Edward LaPuma of W.P. Carey, a real estate financing specialist firm that trades on the New York Stock Exchange.
The portfolio of privately held, publicly registered CPA:14 includes 66 domestic properties that are net-leased to 44 tenants. Typically, a tenant maintains the premises, insures the buildings and pays real estate taxes. Nexpak leased the Georgia facility for an initial 20-year period under a bond-type net-lease.
North Canton, Ohio-based Nexpak designs, makes and delivers mostly plastic media packaging for digital-versatile-disc, compact-disc, video, audio and professional formats.
Besides the Georgia site, Nexpak has manufacturing operations in East Canton, Ohio; Rockaway and South Hackensack, N.J.; Camarillo and El Dorado Hills, Calif.; Tucson, Ariz.; and Helmond, the Netherlands.
Private investment firm Palladium Equity Partners LLC of New York owns Nexpak, which was assembled through a series of 1999 acquisitions.
Separately, in February 1999, a related Carey entity completed a sale-leaseback of the Gilbert, Ariz., headquarters facility of InteSys Technologies Inc. for $22.5 million. Carey manages that 249,000-square-foot location for the CPA:12 REIT. Textron Inc. acquired InteSys in October 1999.
LaPuma estimated that Carey's deals involving plastics processing properties over several years have approached $150 million out of a total of $3 billion in Carey sale-leaseback transactions. ``We are looking for more plastics properties,'' he said in a telephone interview.