Industrial Manufacturing Sale Leaseback on Behalf of Precision Machinists Company

Introduction:

Ascension Advisory successfully completed a sale leaseback transaction, along with a significant tenant improvement financing, on behalf of Precision Machinists Company for their manufacturing facility in Chelmsford, Massachusetts. The facility is located 30 miles from downtown Boston. This sale leaseback transaction enabled the company to unlock capital to pay down debt and upgrade their facility to support continued growth and operational efficiencies for the business.

Client Objective:

Precision Machinists Company aimed to generate liquidity from their owned real estate assets in order to fund growth initiatives for the operating company. Specifically, the company sought to obtain financing for significant facility upgrades, ensuring their operations remained state-of-the-art, while also paying down debt to strengthen the company's balance sheet.

Solution:

Ascension Advisory leveraged their extensive network to identify a buyer capable of providing both sale leaseback financing as well as tenant improvement funding. Through running a competitive bidding process, Ascension generated multiple offers from institutional and private investors, and ended up selecting a local buyer who recognized the strategic importance of the company's Chelmsford facility. The chosen buyer offered a competitive purchase price and agreed to provide a significant tenant improvement allowance at closing. Ascension worked closely with both parties to navigate the due diligence process, ensuring a quick and easy transaction with all parties satisfied at closing.

Conclusion:

The transaction provided Precision Machinists with additional capital to upgrade their manufacturing operations and reinvest in their business without needing to take on expensive debt or dilutive capital. Through Ascension Advisory's expertise and wide investor reach, Precision Machinists unlocked substantial value from its real estate asset, securing capital to support their growth, while remaining in control of the facility for the long term thanks to the long-term lease structure and renewal options to extend for decades to come.