Investment firm W. P. Carey & Co. LLC has provided Dick's Sporting Goods with $18.5 million in build-to-suit financing to expand its existing distribution facility in Plainfield, IN.
W. P. Carey's affiliated income generating real estate fund, Corporate Property Associates 16 – Global Incorporated, will finance the construction of the distribution facility and lease it back to Dick's Sporting Goods under a 15-year triple net lease. Previously, CPA:16 – Global's affiliate, CPA:14, was the sole owner of the adjacent distribution facility, for which it provided expansion financing in 2000. As a result of this recent transaction, the previously existing lease was amended into a new lease whereby CPA:16 – Global and CPA:14 are now joint owners of the facility.
This expansion financing took place subsequent to several sale-leaseback transactions between W. P. Carey's affiliates and Galyan's Trading Company, Inc., which was acquired by Dick's Sporting Goods in 2004. Together with this build-to-suit transaction, W. P. Carey and its affiliates now own nine Dick's Sporting Goods retail and distribution facilities located in Kennesaw, GA; Lombard, IL; Greenwood (2) and Plainfield, IN; Leawood, KS; Freehold, NJ; Buffalo, NY and Fairfax, VA.
Jason Fox, a Director at W. P. Carey, said, “This expansion will enable Dick's Sporting Goods to meet the distributions needs of its growing business. We are pleased that we have been partners with Dick's for so many years and believe that this transaction continues to exemplify our commitment to meeting the long-term financing needs of our tenants. As a result, Dick's will occupy a state-of-the-art distribution facility while our CPA investors will benefit from a long-term continuous stream of income.”
Edward W. Stack, Dick's Sporting Goods Chairman and CEO, said, “The construction of this expanded facility will help Dick's to maintain our leadership position in the sporting goods industry. The collaboration between Dick's and W. P. Carey helped to ensure that we could capitalize on this expansion opportunity. We look forward to a lasting relationship between the two companies.”
