Meek’s Lumber and Hardware Agrees to Sale-Leaseback of 41 Assets
The portfolio includes 23 properties in Missouri, 10 in California, six in Arkansas and two in Nevada, all of which represents nearly the entirety of the company’s operational real estate.
NEWPORT BEACH, CA—Commercial brokerage firm HFF reports it has brokered the sale-leaseback of 41 distribution centers and commercial properties totaling more than 2 million square feet of space for retailer Meek’s Lumber and Hardware.
The properties are located in California, Nevada, Missouri and Arkansas and were sold by Meek’s to an unnamed public real estate investment trust. A second closing for an additional set of properties is set for the fourth quarter of 2018. No financial terms of the transaction were disclosed. The sale-leaseback deal coincided with the recent sale of the company to a private equity sponsor.
On Sept. 26, Angeles Equity Partners, LLC, a Los Angeles-based private investment firm focused on value creation through operational transformation, and Clearlake Capital Group, L.P., a leading private investment firm, announced the acquisition of the Meek’s Lumber Co. Financial terms of the transaction were not disclosed.
The portfolio of 41 properties is fully occupied by Meek’s, a privately-held company that has been in business for nearly 100 years. The portfolio mainly consists of distribution assets with a retail component, but other product types within the opportunity included manufacturing facilities, a design center and the company’s headquarters office building in Springfield, MI.
The HFF investment sales team representing the seller in the transaction included Nick Foster, Coler Yoakam, Michael George and Jules Sherwood, a licensed Nevada real estate broker.
“This portfolio represented a geographically diverse, industrial acquisition of scale, which was bolstered by a long-term master lease to an established credit and excellent unit level performance,” Foster stated. “Given those dynamics, we were pleased but not surprised by the amount of interest and competition that the opportunity generated in the market.”
The portfolio includes 23 properties in Missouri, 10 in California, six in Arkansas and two in Nevada, all of which represents nearly the entirety of the company’s operational real estate.