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RABEN TIRE CO.

QUICK FACTS:

  • 22-Property, Midwest US Retail Portfolio
    • Indiana: 8 Properties
    • Kentucky: 5 Properties
    • Missouri: 5 Properties
    • Illinois: 3 Properties
    • Arkansas: 1 Property
  • 520,000 Square Fee
  • Exclusive advisor to Palladium Equity and Raben Tire Company
  • Acquired by US Based Private REIT
  • 18-Year Sale/Leaseback with Master Lease Structure
  • $43 Million USD in Proceeds 

The Situation:

  • Palladium Equity, a middle market private equity firm based in New York City retained Andrew Sandquist and JC Asensio of CBRE to act as the exclusive advisor on the sale/leaseback of the portfolio company, Raben Tire Company’s owned real estate; 22 properties throughout the Midwest United States.

The Challenges:

  • Special purpose assets in tertiary/rural markets
  • Residual value concerns
  • Environmental contamination issues – majority of the portfolio sites were previously gas stations  
  • Single-buyer requirement for multi-state portfolio
  • Operating lease treatment requirement

The Results:

  • 25-day marketing campaign resulted in nine (9) competitive offers
  • After a fully-vetted selection process, Broadstone Net Lease – a Rochester, NY based, non-traded REIT – is selected.
  • 20-Year Master Lease
  • Total proceeds in excess of $43 million