Newmark Arranges Sale-Leaseback of AHF Products Industrial Portfolio
Newmark announces the sale-leaseback of AHF Products’ five-property, 1.0 million-square-foot industrial portfolio comprising properties across the U.S. Heartland. Newmark’s Managing Director Briggs Goldberg, Vice Chairman Andrew Sandquist, and Managing Director JC Asensio, in cooperation with local licensees, represented the seller in the transaction. Senior Financial Analyst Tyrell McGee provided support on the transaction.
AHF Products, LLC (AHF) is a leading North American hard surface flooring manufacturer. The properties are mission-critical 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.
“Despite uncertainty in the marketplace and growing concerns of a recession, this portfolio garnered extensive interest from numerous institutional sale leaseback investors,” says Goldberg. “Navigating through the turbulence of the past 90 days — including a 100-basis-point increase in treasuries — we maintained a competitive environment, which allowed us to hold the buyer to originally agreed upon terms.”