$17.7M Sale Leaseback for an OpenGate Capital Portfolio Company

Ascension Advisory advised OpenGate Capital on the $17.7 million sale leaseback of a 152,256 square foot manufacturing facility in Forest Park, Illinois, operated by its portfolio company. The property serves as a primary production site for specialty materials and plays a central role in the company’s North American operations.

The transaction was part of a deliberate balance sheet strategy to convert owned real estate into deployable capital without disrupting day-to-day manufacturing activities.

Investment Thesis

OpenGate Capital identified an opportunity to extract value from portfolio company-owned real estate while preserving operational stability for the business. The facility was deeply integrated into production workflows, making continuity and long-term site control essential.

The sponsor’s priorities included:

• Generating liquidity to strengthen the balance sheet
• Reducing overall leverage
• Maintaining full operational control of a mission-critical manufacturing site
• Structuring a lease that supported long-term flexibility

Execution Strategy

Ascension designed a sale leaseback structure aligned with the sponsor’s broader portfolio objectives. The engagement focused on creating competitive tension among investors familiar with industrial and manufacturing assets.

Our process highlighted:

• The facility’s strategic importance to core production
• Established operating history and tenant commitment
• Stable industrial demand fundamentals in the Chicago MSA
• The credit profile and long-term outlook of the operating business

Ascension led buyer engagement, coordinated diligence, and negotiated lease and pricing terms to deliver an efficient closing while protecting long-term operational interests.

Results

The completed $17.7 million transaction provided immediate liquidity and improved capital structure flexibility. Proceeds were used to reduce debt and enhance financial capacity for ongoing operational initiatives.

This engagement illustrates how sponsor-owned industrial facilities can be repositioned as a source of strategic capital, unlocking value embedded in real estate while maintaining uninterrupted control of essential production infrastructure.