Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

PHILADELPHIA-Tasty Baking Co. has paid $4.7 million to buy its production plant at 2801 Hunting Park Ave. back from its pension plan. The locally based maker of Tasty Kake deeded the facility to its pension plan in 1960 in order to reduce taxes and has been leasing the plant ever since.

Such arrangements were disallowed, except by an approved exception, under the 1974 Employee Retirement Income Security Act. Tasty Baking obtained the required exemption. However, due to more favorable interest rates, by replacing the capital lease with ownership now, the company expects a decrease in annual interest expense of approximately $50,000.

While reducing the interest expense, “the purchase also injects cash into the pension plan in order to improve the funded status of the plan for our retirees,” says David S. Marberger, SVP and CFO, in a statement. Mary Borneman, manager of investment relations, tells GlobeSt.com the fund supports approximately 2,000 retirees. She is unsure of the amount of space in the five-story facility, which is located on three acres, and will continue to operate as before.

The repurchase is funded by a term loan and mortgage, which were secured in September in conjunction with the refinancing of the company’s credit facility. Tasty Baking, which makes snack cakes, pies, cookies and donuts, was founded in 1914. It has manufacturing facilities here and in Oxford.

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?


GlobeSt. NET LEASE Fall 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


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 © 2021 ALM Media Properties, LLC. All Rights Reserved.