Hackman Scoops Up Remaining Hostess Assets

LOS ANGELES-Hackman Capital Partners said Monday that it won the bid for the remaining real estate assets of the company formerly known as Hostess Brands Inc. Hackman did not say how much it paid for the 140 properties as well as other assets, located across the country.

However, the Wall Street Journal reported in late August that the portfolio went for $62.5 million, or about $20 per square foot for three million square feet of mainly industrial real estate. A spokeswoman for Hackman did not respond to GlobeSt.com's requests for comment by deadline Tuesday afternoon.

“The Hostess bankruptcy translated into a rare opportunity to acquire significant real estate and equipment at one auction,” says Michael Hackman, founder and CEO of Hackman. The auction took place August 16 in New York City, where Hackman affiliate Hackman Capital Acquisition Co. LLC served as stalking-horse bidder. 

In July, Hostess Brands won bankruptcy court approval to unload the remainder of its assets at auction. Hackman Capital began negotiating with the estate to purchase the real estate and equipment. Although Hostess originally intended to sell the assets off individually or in small batches, Hackman—one of nearly 400 bidders that threw their hats into the ring in May and June—offered to buy them in bulk. 

“As one of the largest wholesale bakers and distributors in the United States, Hostess Brands' properties were strategically located with great visibility and recognition within their respective communities,” Hackman says. He notes that many of these assets, including warehouses, factories and retail stores, are located “in strong markets and on major regional distribution routes. This visibility and recognition has manifested itself in heightened interest and demand for the properties.” Hackman plans to liquidate all the properties and other assets.