Newmark Ciminelli brokers sale/lease back to support client desire to monetize real estate portfolio.
A BRIEF OVERVIEW
Newmark Ciminelli’s brokerage services team successfully completed a sale transaction involving the acquisition of J.W.D. Group’s (JW Danforth) six-building portfolio by Rochester-based Royal Oak Realty Trust. The portfolio, totaling 278,294 SF, consisted of manufacturing, warehousing, and office facilities located in the Buffalo, Rochester, and Albany metropolitan statistical areas (“MSAs”).
CHALLENGE
The Newmark Ciminelli team was approached by JW Danforth to survey the market for potential purchasers of their industrial and office portfolio in New York State, with the goal of monetizing their real estate to support long-term growth strategies. The Newmark Ciminelli team’s local and regional network of investment partners revealed an immediate opportunity with Royal Oak Realty Trust, located in nearby Rochester, NY. As part of the $30.5M sale/lease back arrangement, JW Danforth signed a 20-year master absolute net lease for the properties.
ACTION
The complexity of the transaction Ciminelli Real Estate Corporation, and Newmark Ciminelli combined investments and brokerage expertise and leverage long-term corporate relationships with both JW Danforth and Royal Oak Realty to ensure a successful transaction between buyer and seller, fulfilling the objectives of all involved.
RESULT
The transaction supplied JW Danforth with growth capital and alleviated the obligations associated with ownership of real estate holdings.
Royal Oak Realty Trust Inc. (“Royal Oak”) is a private, non-traded Real Estate Investment Trust (“REIT”) and maintains a portfolio totaling 5.2 million SF.
Danforth is one of the largest mechanical contractors in the Northeast, providing heating, ventilation, air conditioning, refrigeration, and plumbing systems for industrial, mission critical and commercial markets since 1884.
NEWMARK CIMINELLI APPROACH
Success begins with a thoughtful analysis of your property that identifies the current and future marketability of an asset, anticipated capital needs, and projected returns. Our team sources properties, analyzes investments, performs market analysis, and coordinates due diligence activities. We also help in securing equity and debt, and in property repositioning to ensure client success.