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BRIDGEVIEW, IL-Angelo, Gordon & Co. has acquired Stampede Meat Inc.’s 137,700-square-foot processing and distribution facility in a $14 million sale-leaseback transaction.The value-added beef product supplier developed the 12-acre property at 7351 S. 78th St. for its headquarters in 2003. Stampede sold the property to recapitalize its balance sheet, signing a long-term lease to continue fully occupying the building. Exact lease rate and term were not disclosed.”We focus on providing sale-leaseback financing to operationally critical assets, and this is where all of Stampede’s operations occur,” says Teddy Kaplan, managing director and co-manager of Angelo, Gordon & Co.’s Net Lease Group, AG Net Lease.”They built this building, it’s highly customized for them and they’ve put a lot of capital into it,” he says. “Chicago is a great location for food processors and this is in a great location just a few miles from Midway. This is a great building for Stampede and it would be a great building for another food processor as well.”The property is located in the south suburbs, where occupancy rates are around 88% and asking lease rates range between $3 and $5 per square foot, net, according to a recent Cushman & Wakefield market report.Kaplan says this type of space in that market is relatively tight. “These facilities are generally constructed by owner-occupiers, so there are not many that remain vacant,” he says. “There is almost no spec development that goes on for facilities like this.”According to Kaplan, the deal is indicative of a growing trend in commercial real estate. “This is reflective of our ability and the market’s desire to do more sale-leasebacks in an environment where traditional real estate and corporate financing is harder to come by,” he tells GlobeSt.com. “In capital-constrained environments, we have always seen more sale-leasebacks done, and this is an environment that is more capital-constrained than any of us have ever seen.”Jones Lang LaSalle represented Stampede, a portfolio investment of Fairmont Capital, PNC Mezzanine Capital and Sankaty Advisors, in the transaction.

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