This sale follows Petrucci's purchase and leaseback of an office property in nearby Allentown earlier this month. At that time, Greg Rogerson, Petrucci's general counsel, indicated the company expected to pursue additional sale/leaseback transactions in the Lehigh Valley.
Principal Jim Petrucci calls Paragon "an outstanding addition to our roster of tenants," and adds, "this sale and partial leaseback is a win-win. Paragon has monetized its real estate asset and JGPCO has a quality building and site to fully develop."
Paragon expects a pre-tax gain of about $2.2 million over the five-year leaseback period. Approximately $1.5 million of that will be realized in the current year. Meanwhile, cash proceeds from the sale will be used to make an accelerated payment on Paragon's term debt, which currently stands at $5.7 million.
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