YOUNGSTOWN, OH-Polyair Corp., a division of Polyair Inter Pack Inc. based in Toronto, has sold its two manufacturing facilities to Boston-based STAG Capital Partners in a 15-year, sale-leaseback deal. The protective packaging product manufacturer and distributor completed the sale for $6.9 million, and will pay $775,000 for the first year of the lease of both properties, along with the payment of operating expenses and property taxes.

The property in Youngstown consists of 153,708 sf on 20 acres at 1100 Performance Place in the Performance Industrial Park. The other 102,318-sf building is in Bardstown, KY, on 10 acres at 300 Spencer Mattingly Lane.

Polyair said in a company statement that the sale proceeds will be used to retire $6.2 million of term debt and cancel a $2.1-million letter of credit. The cancellation of the letter of credit will result in a corresponding increase in available credit under the company's operating bank line. "The company wanted to remain in the buildings long-term, but didn't want to hold them on the balance sheet any longer," says David Pizzotti with STAG.

He tells GlobeSt.com that the property deal made sense, as both are class A buildings in secondary markets. "The tenant was willing to make a long-term commitment," Pizzotti says. Fred Herrera with CB Richard Ellis represented Polyair in the sale.

Pizzotti said he cannot reveal the specific lease rates for each building. Youngstown is a suburb of Cleveland, which has an average lease rate of $3.81 for general industrial space, according to a first quarter report by Grubb & Ellis.