Buy-leaseback Deal for 6 Kings Units to Help Fund Acquisition
NEW YORK -- Investment firm W.P. Carey & Co., LLC here said yesterday that it completed a $48.4 million sale-leaseback transaction with Kings Super Markets, Inc., the proceeds from which helped finance the $61.5 million acquisition of Kings by an investor group comprising Angelo, Gordon & Co.; MTN Capital Partners, LLC; and industry veteran Bruce Weitz, the ex-c.e.o. of Duane Reade and ex-president of First National Supermarkets, who will become the new chairman of Kings.
As part of the acquisition financing, W.P. Carey's affiliated income generating real estate fund, Corporate Property Associates 16 -- Global, Inc., bought six stores and leased them back to Kings under long-term triple net leases. The stores are located in Summit, Livingston, Maplewood, Montclair, Morristown, and Cresskill, N.J.
In a statement Jason Fox, a director at W.P. Carey, said, "The Kings facilities represent extremely valuable pieces of real estate. They are located in prime locations in the center of dense, affluent areas of northern New Jersey and are very accessible to Kings' customers. Kings is a well-established upscale food retailer with a loyal customer base that has been able to differentiate itself from its competitors with its excellent locations and focus on high-end products, particularly perishables. W.P. Carey's sale-leaseback financing and Angelo, Gordon's acquisition will lay the groundwork for Kings' continued success."
Added Brent Leffel, a director at Angelo, Gordon: "W. P. Carey's sale-leaseback was a key component in the financing of our acquisition of Kings Super Markets. This was a difficult transaction, given the three-week turnaround required to complete the sale-leaseback concurrently with our buyout. However, W. P. Carey was dependable and professional in its ability to close quickly."
Kings operates 26 stores in New Jersey and on Long Island, New York.
As part of the acquisition financing, W.P. Carey's affiliated income generating real estate fund, Corporate Property Associates 16 -- Global, Inc., bought six stores and leased them back to Kings under long-term triple net leases. The stores are located in Summit, Livingston, Maplewood, Montclair, Morristown, and Cresskill, N.J.
In a statement Jason Fox, a director at W.P. Carey, said, "The Kings facilities represent extremely valuable pieces of real estate. They are located in prime locations in the center of dense, affluent areas of northern New Jersey and are very accessible to Kings' customers. Kings is a well-established upscale food retailer with a loyal customer base that has been able to differentiate itself from its competitors with its excellent locations and focus on high-end products, particularly perishables. W.P. Carey's sale-leaseback financing and Angelo, Gordon's acquisition will lay the groundwork for Kings' continued success."
Added Brent Leffel, a director at Angelo, Gordon: "W. P. Carey's sale-leaseback was a key component in the financing of our acquisition of Kings Super Markets. This was a difficult transaction, given the three-week turnaround required to complete the sale-leaseback concurrently with our buyout. However, W. P. Carey was dependable and professional in its ability to close quickly."
Kings operates 26 stores in New Jersey and on Long Island, New York.