Introduction:
Ascension Advisory is proud to announce the successful completion of a 3-building sale leaseback transaction for Jtec Industries, a leading manufacturer of material handling equipment solutions. This transaction involved three mission-critical manufacturing assets located in Illinois, which form the operational backbone of Jtec's business, supporting its extensive and complex production processes.
Client Objective:
Jtec’s primary objective was to unlock significant capital tied up in its real estate assets to generate nondilutive liquidity. This strategic decision aimed to provide the company and its principals with the flexibility to redeploy resources towards growth initiatives and improve operational efficiencies, all while ensuring uninterrupted use of these essential facilities. By leveraging this approach, Jtec sought to solidify its market position and accelerate its strategic vision.
Solution:
Ascension Advisory applied its in-depth industry knowledge and extensive investor relationships to identify a highly qualified investor familiar with the material handling sector. The Ascension team led a competitive bidding process that generated several strong offers. After a detailed evaluation, they selected a buyer who understood the unique value of Jtec’s operational footprint and could support future growth. The selected buyer presented a compelling offer, recognizing the strategic importance of the 200,000 square feet of space spread across 18 acres.
Moreover, Ascension secured the investor's commitment to fund a future expansion project on one of the sites, an essential component for Jtec’s anticipated growth. Throughout the transaction, Ascension facilitated seamless coordination between Jtec and the investor, addressing any challenges that arose and ensuring efficient due diligence and lease negotiations. This structured process allowed both parties to align on goals and timelines, making the transaction smooth and efficient.
Conclusion:
The 3-building sale leaseback transaction provided Jtec with a customized liquidity solution, enabling them to access substantial capital without sacrificing operational control. With Ascension Advisory’s expertise and strategic approach, Jtec unlocked value from their real estate holdings, resulting in meaningful proceeds to reinvest into future growth initiatives. This successful transaction underscores Ascension's commitment to delivering creative solutions that drive long-term value for their clients.