JANESVILLE, WI-Angelo, Gordon & Co. has purchased two industrial buildings, totaling 277,000 sf, for $9.4 million in a sale-leaseback deal with the sole occupant, RathGibson Inc. The firm, a portfolio company of New York-based Castle Harlan Inc., is a manufacturer of stainless steel and alloy-welded tubular products.
In selling its buildings, RathGibson wanted to pay down debt and expand the complex's warehouse and headquarters office space, says Ted Kaplan. He's a managing director with AGC and a co-manager of the company's Net Lease Group. He says the company had been operating in a 250,000-sf building, and the sale of that facility to AGC allowed the purchase of a 25,000-sf building next door for use by RathGibson Inc.
"This is a very crucial operating facility for the company, and we think highly of the business," Kaplan tells GlobeSt.com, explaining why the company agreed to buy the property. He refused to provide the lease rate it is charging the manufacturer for the 20-year contract. Lease rates for the I-39 corridor average $3.91 per sf, according to a recent market report by Grubb & Ellis.
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