Phil Petrocelli, chief executive officer of Boyle, tells GlobeSt.com that the company sold the buildings via a 1031 exchange to free capital for acquisitions. When the 60-year-old company was smaller, it made sense to own the real estate, but with the company doubling in size in recent years and with so much equity in the real estate, the sale-leaseback was a good way to monetize the value in the property, Petrocelli explains.
In addition to the headquarters building in Newport Beach, the properties include buildings in San Diego, Ventura and Orlando. The sale was brokered by Bob Smith, Michael Kane, Karen Scholte and Paul Jones of the Newport Beach office of CB Richard Ellis. CBRE Ventura County office brokers Bill Clark and Chuck Engel joined the Newport Beach team in representing Boyle's interests in the Ventura building.
Petrocelli tells GlobeSt.com that, rather than face a substantial tax liability because Boyle had no basis left in the properties, the Newport Beach-based firm bought $30 million worth of CVS stores. With the extra equity that was still left over after the acquisition of the CVS stores, Boyle paid down debt and still has cash on its balance sheet from the deal.
Boyle is the sole occupant of the four buildings that it sold, with the exception of a few small subtenants, and the buildings are essentially 100% occupied. According to its web site, Boyle's expertise covers water resources, water treatment and distribution, sewerage and water reclamation, stormwater and transportation.
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