Introduction:
Ascension Advisory is pleased to showcase the successful completion of a short-term industrial sale leaseback in Pennsylvania on behalf of a repeat private equity backed metals distributor.
Client Objective:
The private equity firm, specializing in industrial investments, wanted to optimize its portfolio by divesting the real estate asset of one of its platform investments. The objective was to unlock capital and strategically redeploy resources to support ongoing growth initiatives within their portfolio. The company chose to sign a short term lease agreement to maintain flexibility and optionality.
Property Details:
The industrial property is located in Pennsylvania, 30 miles from Philadelphia. The tenant, a market-leading metals distributor, signed an absolute triple net lease at closing.
Solution:
Leveraging their expertise in industrial real estate transactions, the Ascension Advisory team meticulously structured the sale process for the company. The deal team facilitated lease and purchase agreement negotiations, ensuring favorable terms and a seamless transaction process for the private equity firm and their operating company.
Outcome:
The successful transaction in Pennsylvania resulted in the private equity firm achieving its objectives to unlock capital tied up in its real estate assets. The $5.8 million transaction provided the firm with liquidity to pursue new investment opportunities and strengthen their position within the industrial sector.
Conclusion:
This sale leaseback closing in Pennsylvania highlights Ascension Advisory's commitment to delivering tailored solutions and exceptional outcomes for its private equity clients. By leveraging their extensive investor universe and robust industry knowledge, Ascension facilitated a smooth transaction for all parties.
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