Two of WP Carey’s publicly-held non-traded REIT affiliates, CPA:17 – Global and CPA:18 – Global, have acquired the State Farm Operation Center from State Farm Mutual Automobile Insurance Company.
The building, located in Austin, Texas, is leased to State Farm for an initial term of 15 years. The price was approximately USD110m plus transaction costs.
The acquisition is the first investment made by CPA:18 – Global.
The 448,898 square foot facility has served as State Farm's Operation Center since 1994 and is located on 83.5 acres in AmberOaks Corporate Center, a 263 acre master-planned corporate park ten miles northwest of the CBD in Austin.
Gino Sabatini, WP Carey managing director and co-head of global investments, says: "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. 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."