AHF Completes Sale-Leaseback of 1M Sq. Ft. of Industrial Property
Chicago, IL, August 5, 2022-Newmark announces the sale-leaseback of AHF Products’ five-property, 1.0 million-square-foot industrial portfolio comprising properties across the Southeastern U.S.
AHF Products(AHF) is a global manufacturer of hardwood, resilient and laminate flooring. The properties are industrial manufacturing and distribution facilities that are fully occupied by AHF. Driven in part by industry consolidation as well as investor demand for net leased industrial properties, AHF intends to use the proceeds from the transaction to fund future growth.
Located in Tennessee, Arkansas, Missouri and Kentucky, the five properties that make up the portfolio are subject to a long-term absolute net lease with annual rental escalations. Offering geographic diversity, the portfolio's assets are within strategic proximity to AHF's suppliers, allowing the company to provide efficient, low-cost manufacturing and competitive pricing for the American consumer.
AHF Products just purchased part of Armstrong Flooring's North American assets including use of the brand name and funds from the sale of these properties will help offset the cost of this purchase. AHF Products is owned by Paceline, a private equity firm.
According to Lancaster Online, the properties were sold for $60 million.
“According to property records and Securities and Exchange Commission filings, AHF sold factories and warehouses in Arkansas, Kentucky, Missouri and Tennessee to Broadstone Net Lease, based in Rochester, New York.
“The leaseback deal is for 25 years, with options to extend the lease twice for ten-year intervals. AHF’s payment is about $5 million annually, Broadstone reported to investors on Thursday.
“The five properties total 982,000 square feet of warehouse, distribution and manufacturing space. The sales occurred between June 17 and 22, according to property records.”