ny sale-leaseback or net lease transaction revolves around three components: the credit of the tenant, the quality of the real estate, and the criticality of that real estate to the tenant’s operations. Angelo, Gordon, with its significant experience as a principal investor in credit and real estate assets, provides an underwriting platform unparalleled in the net lease industry, enabling the Net Lease Group to execute transactions with a great degree of certainty, timeliness, and sophistication. Additionally, AG Net Lease has strong construction and development expertise and works with its partners to achieve their construction goals, such as sustainability and LEED certification.
AG Net Lease has extensive experience providing sale-leaseback financing and build-to-suit financing to privately-held companies, public middle market companies and financial sponsors’ portfolio companies. AG Net Lease views its tenants as long-term partners. Corporate real estate needs are not static, and AG Net Lease works with its partners to structure transactions tailored to tenants’ needs.
Goodyear HQ Transaction
The Goodyear Tire and Rubber Company (Nasdaq: GT) was founded in Akron, OH in 1898, but when the Company started looking for a new headquarters building, it considered moving out of state. AGNL was able to provide financing alongside various government entities to incentivize Goodyear to continue its operations in Akron and thus save and create jobs in the local market. A 639,000 square foot Class A headquarters office building and an adjacent 2,910-space parking facility were constructed for Goodyear’s use. The headquarters building received LEED gold certification.
The total investment in the projects was approximately $215 million, including approximately $57 million of public funding contributions. Goodyear signed 25-year leases with AG Net Lease for both the headquarters and the parking structure. The office buildings are also connected to Goodyear’s existing Technical Centers, into which Goodyear invested $45 million in renovations. The transaction allowed Goodyear to maintain its world headquarters in Akron and create world-class buildings, with high-quality amenities for both Goodyear and non-Goodyear users on this campus.
Molina Healthcare Transaction
Molina Healthcare, Inc., a Fortune 500 company, provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through their locally operated health plans in 11 states across the nation, Molina currently serves over 2.6 million members. Dr. C. David Molina founded the company in 1980 as a provider organization serving low-income families in Southern California. Today, Molina continues his mission of providing high quality and cost-effective health care to those who need it most.
In June 2013, AG Net Lease purchased two highly critical office buildings, the national and California headquarters in Long Beach, CA and the Ohio Headquarters in Columbus, OH. The proceeds from the transaction helped fund Molina’s continued rapid growth and expansion into additional service areas and states. This is one of the ways that AG Net Lease provides creative sources of financing to help companies create jobs around the country.
CSM Bakery Solutions Transaction
CSM Bakery Solutions is a leading global producer and business-to-business distributor of bakery ingredients, semi-finished and finished products, with leading market positions in Europe and North America. CSM operates in more than 60 locations with approximately 8,500 full time employees worldwide. Through strong partnerships with in-store bakeries, retailers, foodservice operators and distributors, CSM delivers an alluring spectrum of sweet goods and innovative business solutions derived from global expertise.In August 2014, AG Net Lease purchased a portfolio of eighteen industrial bakery and distribution facilities in four countries (USA, Canada, UK, and Germany) and entered into six cross-defaulted 20-year net leases. AG Net Lease was able to close this highly complex transaction within two and a half months of the commencement of due diligence. The complexity included property diligence at 18 sites in four countries and negotiating legal documents in five sovereign tax jurisdictions and three languages.
. P. Carey Inc. is a leading global net lease REIT that provides real estate financing solutions for companies worldwide. From sale-leasebacks to cross-border financing, W. P. Carey has a history of working with corporate real estate executives and developers to structure tailored transactions that meet their specific timing, funding and contractual requirements. The following case studies demonstrate our ability to work with many companies in a variety of industries on their industrial real estate needs.
Pratt: W. P. Carey Inc. acquired a 356,000 square-foot manufacturing facility through a $21-million sale-leaseback transaction. The facility — located 30 miles from Dayton, Ohio and situated close to important customer locations — was recently custom-built to fulfill Pratt’s corrugating and box manufacturing needs. Founded nearly 25 years ago, Pratt has grown to be the fifth largest corrugated packaging company in the United States with approximately 4,400 employees across 70 facilities in over 20 states. Pratt has invested approximately $35 million in equipment for the facility, which conforms to modern industrial facility standards, and is the company’s newest and most efficient corrugating facility nationwide.
Tommy Hilfiger: The Tommy Hilfiger distribution center was acquired by W. P. Carey Inc. for approximately $38 million (€30 million). The facility is located in Venlo, Netherlands — an established distribution location, with close proximity to the German border and the two largest ports in Europe — and serves as Tommy Hilfiger’s main logistics center for all of Europe. In Europe, Tommy Hilfiger sells to more than 9,000 wholesalers and owns/operates 118 retail stores and 43 outlet stores. The property has received significant investment by Tommy Hilfiger for internal fit-out and has both unbuilt land and adjacent land available for expansion.
The facility is subject to an existing net lease with Tommy Hilfiger Europe B.V.
Janus International: W. P. Carey’s non-traded REIT affiliate, CPA®:18 — Global, acquired the three properties — a headquarters/manufacturing facility and two manufacturing facilities — for a total of approximately $17 million. Janus International is the leading manufacturer of steel roll up sheet doors and storage facility components for self-storage, commercial and industrial markets. The three facilities total 362,000 square feet and are strategically located in Temple, GA, Houston, TX and Surprise, AZ to serve Janus’ nationwide manufacturing and distribution platform.
Belk: CPA®:18 – Global, one of W. P. Carey’s non-traded REITs, acquired Belk’s 860,000 square-foot distribution center, located in Jonesville, SC. With nearly 300 stores across 16 states, Belk is one of the largest retailers in the United States. The company has made e-commerce a core focus for its future growth and this facility is its sole e-commerce facility in the United States. The distribution center was acquired for approximately $45 million.
Polaris: W. P. Carey Inc. acquired a 362,000 square-foot, light-industrial and distribution center in Opole, Poland for $29.5 million (€23.8 million). Polaris designs, manufactures and markets recreational vehicles and is the largest manufacturer of snowmobiles and the second largest maker of all-terrain vehicles in the world. The facility is located close to Poland’s national highway in Opole, selected for its proximity to German population centers, the snow-covered regions of Southern Germany and Austria and the large agricultural areas of Eastern Europe. It will serve as Polaris’ primary European assembly and distribution center.