(EDITOR’S NOTE: According to previous reporting by The Registry, Caro Nut was looking for pricing guidance of $36 million, or roughly $154 per square foot. The pricing of $30 million brings the per square foot figure down to $128.)
Sacramento, CA (September 12, 2022) — Newmark announces the sale-leaseback of a
233,840-square-foot industrial asset occupied by Caro Nut in Fresno, California. Newmark Director Carter Lear and Managing Director Jordan Alleva represented the seller, Caro Nut, a producer of nuts and nut butters for blue-chip retail customers such as Costco and Hormel, in the $30.04 million transaction to buyer STAG Industrial, a publicly traded REIT.
“The transaction underscores the trend of industrial owners exploring sale-leaseback opportunities to capitalize dormant values of their property holdings,” said Lear. “While leasebacks are not a new concept, the recent surge of industrial asset values has allowed owners and occupiers alike to capture upside in their portfolios and apply sale proceeds in other ways to benefit their business.”
He added, “Leaseback strategies in this environment provide sellers an avenue to finance capital projects or improve their operating margins, while at the same time creating product in a supply constrained market where equity investors have been starved for deal flow.”
The property is a single-tenant nut processing facility operated by Caro Nut Company, which processes and packages a variety of nuts sourced from around the world and turns them into dry
roasted, oil roasted, or pasteurized raw snacking nuts, nut butters and ingredients for major brands, private labels and industrial manufacturers. Property features include 24- to 26-foot clear height, 44- by 48-foot column spacing, 10 dock high doors and four grade level doors, paved and fenced yard and ESFR sprinklers.
Located at 2624 E Edgar Avenue in Fresno, the property is ideally located in a major arterial location for California’s manufacturing, processing and distribution operations. It is strategically located off Highway 41 and Highway 99 with excellent visibility and considerable traffic counts. The property is located next to several prominent national manufacturers and brands such as XPO, Aramsco, John Deere, Titan Distributors Inc., FedEx and 7-Eleven.
“STAG Industrial performed flawlessly in this transaction, closing in record time in the midst of a very uncertain economic environment,” said Alleva. “We are pleased to complete this transaction for Caro Nut to allow the company to unlock value in its real estate holdings.”
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.2 billion for the twelve months ending June 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,500 professionals around the world.