STREAM Capital Partners, LLC has arranged two sale and leaseback transactions. The first was a four-property portfolio of refrigerated, food production and distribution facilities in Boston and the Midwest. STREAM also handled the sale-leaseback of a 240,000-square-foot industrial packaging facility in west suburban Chicago.
The facilities in the portfolio are occupied by a leading private manufacturer and distributor of packaged and value-added meat products, snacks and appetizers. The buyer, a private real estate investor, acquired the four properties for $32 million and simultaneously entered into a long-term lease with the tenant.
Chelsea Mandel and Phil DiGennaro of STREAM represented the seller on the transaction. They expect to see more food-related facility sale-leasebacks as investor demand for food-related properties strengthens, given positive investor sentiment around this industry and asset class.
“This was a great transaction for both sides,” said Mandel. “The buyer is getting a long-term lease with a best-in-class food tenant and the seller is able to use the proceeds to recapitalize its balance sheet and prepare for continued growth of its business.”
In the second transaction, Jordan Shtulman and Jonathan Wolfe of STREAM represented the seller of the property, which is 100 percent occupied by a leading private industrial packaging manufacturer. The buyer, a private real estate investor, acquired the property for $17 million and simultaneously entered into a long-term lease with the tenant.
“This was a great transaction for both sides,” said Wolfe. “The seller is in a fast-growing business and is utilizing capital in a more efficient way to fund their growth, rather than to keep it tied up in owned real estate. The buyer was able to acquire a great property in West Suburban Chicago, where the industrial market is extremely strong.”
Shtulman added that he believes that “more industrial companies will look to take advantage of a strong industrial property market to monetize real estate and fund business growth.”