Thank you for sharing!

Your article was successfully shared with the contacts you provided.

FORT WORTH-Fifteen days after announcing the deal, Crescent Real Estate Equities Co. and Vornado Realty Trust have inked the final paper to create a REIT from the AmeriCold Logistics holdings and flip a 20.7% stake to Los Angeles-based Yucaipa Cos. The all-in take totals $192.7 million.

For $145 million, Yucaipa, an 18-year-old private equity fund and grocery chain giant, has taken over day-to-day operations of the Atlanta-based AmeriCold while the search heats up for a new top executive. As previously reported, the Fort Worth-based Crescent’s stake drops to 31.7% from 40% while the Paramus, NJ-headquartered Vornado cuts its 60% to 47.6% to make way for Yucaipa, which bought in based on a near $1.5-billion total enterprise value.

Under the plan, Yucaipa’s investment will earn a 20% promote through Dec. 31, 2007, of any increased value in AmeriCold. The promote is capped at 10% of the controlling partners’ remaining common shares in AmeriCold. The packaged play includes merging two AmeriCold entities, generating $47.7 million in cash for Crescent and Vornado.

Based on previous statements, Crescent’s net gain nudges $11 million and Vornado picks up $20 million. The closing also repaid a $26.8-million loan held by Vornado Operating Co.

With Yucaipa at the helm, the 75%-leased, 87-property portfolio, totaling 17.5 million in 32 states, is expected to make significant strides. John C. Goff, vice chairman and CEO for Crescent, previously told GlobeSt.com that Yucaipa expects to realize a 20% to 25% return on its investment.

Yucaipa’s expectations translate into an operations change for the temperature-controlled asset, which has been under the magnifying glass for its losses in recent years. A line of consultants advised Crescent and Vornado to sell. “I always thought it offered more upside than the industry analysts gave it credit for,” Goff says in a previous GlobeSt.com interview. “Getting an entity like Yucaipa really validates the company.” And, he added, the sale means Crescent has recaptured more than half of its $300-million investment and its partner, Vornado, is sitting with a comparable return.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.