Case Study: Sale Leaseback Transaction for VAST Industrial Corp.

Ascension Advisory completed a sale leaseback for VAST Industrial Corp.'s manufacturing facility in Easton, Maryland.

The transaction unlocked capital from an owned operating facility, allowing VAST to reinvest in the business while continuing operations under a new long-term lease.

VAST Industrial Corp. is a North American manufacturing platform that acquires and grows specialized industrial businesses. The Easton facility is home to The Whalen Company, a U.S. manufacturer of commercial and high-rise residential HVAC systems serving the multifamily, hospitality, healthcare, and institutional markets. VAST had recently acquired The Whalen Company as an add-on to their platform, and the acquisition included the subject property in Easton.

Transaction Approach

Ascension structured and executed the sale leaseback of VAST's 84,800-square-foot manufacturing facility in Easton, Maryland. The property supports fully integrated HVAC production, including metal fabrication, pipe bending, electrical wiring, chassis assembly, and cabinet assembly, with more than $6.9 million invested in manufacturing equipment. Ascension's investor outreach process emphasized the strength of the local operating business and the VAST platform as a whole, the facility's role within Whalen's manufacturing operations, and VAST's acquisition-driven growth strategy. The property's location within the Baltimore-Washington industrial corridor and long-term operating history further supported investor interest.

The transaction resulted in a new long-term absolute triple-net lease with annual rent escalations, allowing VAST to retain operational control while unlocking capital for future growth.

Outcome

The sale leaseback generated VAST additional capital to deploy across its manufacturing platform while maintaining uninterrupted operations at The Whalen Company's Easton facility.

For the real estate investor, the transaction provided a mission-critical manufacturing asset leased under a long-term absolute NNN structure to a growing industrial platform.

The transaction highlights Ascension Advisory's ability to help manufacturers expand using sale leaseback financing as part of their broader growth objectives and capital allocation strategies.