Introduction:
Ascension Advisory is proud to showcase its recent closing – a $12.1 million industrial sale leaseback in Long Island, New York, on behalf of Widex, a leading global hearing aid manufacturer and hearing solutions provider. The transaction involved the sale leaseback of a state-of-the-art manufacturing and distribution facility located in Hauppauge, New York, to real estate investor Candor Capital Partners. The Ascension team ran the entire process on behalf of Widex, generating a successful outcome for the company.
Client Objective:
Widex aimed to unlock capital tied up in its real estate assets in order to reinvest into the operating business at an attractive cost of capital. The company identified its Long Island, New York property as an ideal candidate for a sale leaseback transaction, allowing it to monetize the property while continuing to operate from the location.
Solution:
Leveraging their extensive network and industry knowledge, Ascension Advisory identified a New York investor, Candor Capital Partners, as an ideal buyer for the sale leaseback transaction. The process attracted considerable interest from various investors, including private real estate investment firms and institutional groups. After a thorough analysis of all offers, Ascension recommended Candor Capital Partners as the most compatible buyer due to their local presence, attractive terms, and extensive knowledge of this market. Candor swiftly completed due diligence, ensuring that the sale leaseback transaction would be ready to proceed as soon as Widex was prepared to close the deal. Both Widex and Candor expressed their satisfaction with the outcome, recognizing the potential for a mutually beneficial long-term partnership as tenant and landlord.
Conclusion:
The $12.1 million sale leaseback was a success for all parties involved. With the invaluable guidance of Ascension Advisory, Widex successfully unlocked substantial proceeds from its real estate assets, all while retaining its operational presence in the same location and demonstrating its commitment to the site with a long-term lease agreement. Widex is able to use the proceeds from the transaction to further its growth trajectory as a leader within the hearing aid industry, while Candor Capital Partners has secured a strategic real estate investment in a prime location with a best-in-class tenant.