$27 Million Cabinet Manufacturer Sale Leaseback

Background:

The Ascension team represents Express Kitchens, a leading kitchen countertop and cabinet manufacturer based in the northeast. The business owner was looking to generate capital from a sale leaseback of his owned real estate assets and use the capital to reinvest into the core operating business and grow its showroom footprint in the region.

Client Objective:

Ascension analyzed the company’s real estate portfolio and presented a sale leaseback proposal to the business owner. The business owner was interested in this financing strategy as it was more flexible than traditional debt financing, and would not require any financial covenants or personal recourse of the business owner. Additionally, the business owner would not take on any dilutive capital through the sale leaseback or give up any operational control.

Solution:

Given the mission-critical nature of the properties and Ascension’s robust investor network, the team generated multiple sale leaseback offers for the real estate assets. Ultimately the transaction closed at a price of $27 million with a publicly traded REIT.

The sale leaseback was less restrictive when compared to having the mortgage Express Kitchens had prior to doing the transaction. Additionally, the sale leaseback enabled their release from a personal guaranty and restrictive covenants.