Background:
The Ascension Team represents a private equity backed leader in the liquid bulk transportation space. The portfolio consists of 11 locations across six states. The subject properties are a combination of industrial, outdoor storage, truck terminal, and tank wash sites, mostly with large site acreage and low building coverage ratios. The Company’s private equity investor engaged Ascension to structure and advise on the sale leaseback transaction. The private equity firm was looking to monetize the company’s owned real estate portfolio in order to generate sufficient proceeds to finance the sponsor’s acquisition of an add-on to the broader logistics platform.
Client Objective:
The client was looking for a trusted advisor to guide them through the process to ensure an efficient and seamless process from start to finish. Additionally, Ascension was instrumental in putting in place a structure and lease for the sale leaseback that brought maximum operational flexibility for the company and the private equity owner. The company selected Ascension as its advisor given Ascension’s experience in the industrial outdoor storage asset class, and Ascension’s relationship with the sponsor. The company also trusted that Ascension would be able to achieve the most favorable and flexible lease terms for the company.
Solution:
Ascension provided their knowledge and support along the process, which resulted in a successful closing at a purchase price of $74.25 million, along with flexible lease terms for both the operating company and the financial sponsor. The transaction closed with a private investment firm out of Pennsylvania who has a specific investment mandate in the industrial outdoor storage asset class.
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