American Forest Products has sold a portfolio of industrial properties located in California, South Carolina and Virginia to a private equity fund for $13.8 million. Under the terms of the sale, coordinated by Stan Johnson Company's New York office, AFP agreed to a lease term of twenty-one (21) years as the single tenant within each property under an absolute net, master lease. The portfolio included 5 industrial properties, totaling roughly 575,000 square-feet.
"Every detail of the sale leaseback had to be specially managed to create a strong growth path for American Forest Products," said Camille Renshaw of Stan Johnson Company. "Ultimately, the seller was able to pay off debt and expand its credit revolvers for immediate and expansive new business growth."
The deal also provides tax advantages for AFP in leasing back the properties, she said. After five years, American Forest Products has the option to buy the land back, according to a Sacramento Business Journal article.
American Forest Products is the leading provider of third-party logistics and retail services, in conjunction with the sale of moulding and specialty millwork, into big-box retail and pro-dealer locations, such as Home Depot.
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