ATLANTA-This area’s commercial real estate investment market is ending the year on a high note. In one of the largest commercial real estate deals of its kind this year in the Southeast, Dallas-based Cardinal Capital Partners Inc. has acquired 38 Georgia-Pacific Corp. warehouses totaling 5.1 million sf in 26 states in a pre-tax deal valued at $175 million, or $150 million after taxes.

Cardinal will lease the space back to Georgia-Pacific on a long-term lease for an undisclosed sum. The deal is part of the previously announced sale by Atlanta-based G-P of a 60% controlling interest in Unisource to Boston-based Bain Capital. That deal was valued at $790 million.

The Cardinal-Georgia Pacific deal will be shown as a capital lease obligation on G-P’s financial statements.

In the Bain Capital-Georgia Pacific transaction, Boston-based Bain acquired a 60% interest in Unisource Worldwide Inc., a G-P subsidiary based in suburban Norcross, GA.

At closing, G-P received about $470 million in cash from Bain and other Unisource funds previously used by the 75-year-old, $25-billion corporation to reduce debt. G-P also expects to receive a $170 million federal income tax refund from the deal in the first half of 2003. G-P is holding a note from Unisource for the same amount.

“Completion of the sale of a controlling interest in Unisource accomplishes several key objectives for Georgia-Pacific,” G-P chairman/CEO A.D. “Pete” Correll says in his company’s statement. “This transaction helps us reduce debt, which strengthens our balance sheet, and results in Georgia-Pacific partnering with a firm that has a strong track record of building long-term value.”

Matt Levin, a managing director at Bain Capital, sees the deal as “long-term growth strategy” by the Boston firm. “Unisource is a market leader in a big industry that remains committed to serving customers and is well-positioned to grow,” Levin says in the same statement.

SunTrustRobinson Humphrey, a division of SunTrust Capital Markets Inc. and a wholly owned subsidiary of SunTrust Banks Inc., advised Georgia-Pacific on the Cardinal transaction. Bank of America and Citigroup’s Salomon Smith Barney provided Bain Capital with senior bank financing for the deal.

Bain is a global private investment firm that owns private equity, venture capital, fixed income and public market fund advisors with over $14 billion in assets under management.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.