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ROCKWELL AUTOMATION

QUICK FACTS:

  • 24-Property Portfolio in U.S. and Canad
  • 3.8 Million Square Fee
  • Mix of Office and Industrial Propertie
  • Exclusive Advisor to Rockwell Automatio
  • Acquired by US Based Private REIT
  • 5, 10 and 15 Year Lease
  • Sale Price in excess of $150 Million 

The Situation:

  • Rockwell Automation Inc., a leading industrial automation company focused on providing power, control and information solutions based in Milwaukee, Wisconsin, selected CBRE’s sale/leaseback specialist Andrew Sandquist along with CBRE’s Global Corporate Services team led byJames Whalen and Christopher Reynolds, to exclusively advise on the structuring and execution of a sale/leaseback on behalf of Rockwell Automation.

The Challenges:

  • Termination right
  • Develop and implement a comprehensive strategy for multi-asset class facilities (Manufacturing, Distribution, R&D, Office and HQ)
  • Position operating facilities to meet business unit needs, evolving from a manufacturing base to a service-oriented platform  more global in scop
  • Create long-term control of, and operating flexibility for strategic facilities with short-term lease
  • Implement proactive exit strategy on rural, tertiary or otherwise challenging properties to capitalize on record real estate valuation
  • Create liquidity to fund higher returning investments (IT projects, under funded pension, etc.)

The Solution:

  • Sale/Leaseback of a significant portion of Rockwell’s owned portfolio in North Americ
  • 24-property portfolio consisting of 3.8 million square feet across the United States and Canad
  • Structure transaction to meet needs of a broad range of interest groups within Rockwell, including Operations, Treasury, Tax, Financial Planning and Risk Management
  • Leverage Rockwell’s financial strength and investor demand for leased propertie
  • Dictate business terms at each facility, including length of lease term, renewal rights at fixed rental rates, termination options and operational contro
  • Dictate sale terms – purchase and sale contract and lease

The Results:

  • Broad marketing campaign exposed to over 2,000 potential investor
  • 28 portfolio-level offer
  • Narrowed offers down to the three (3) most aggressive and qualified buyer
  • Select First Industrial Realty Trust as sole buye
  • 90-days from initial offering to signed contrac
  • 24-properties with 5, 10 and 15 year NNN leases; 4 renewal options in each with fixed rates; termination options in each