Mission-critical industrial portfolio trades in $20M+ sale-leaseback

NEWPORT BEACH, Calif., June 25, 2021 – JLL Capital Markets announced today that it has closed the approximately $20 million sale-leaseback of a three-property, 313,000-square-foot, mission-critical industrial portfolio in Visalia, Calif.; Birmingham, Ala., and Lafayette, La.

JLL marketed the property on behalf of the seller, Pacific Avenue Capital Partners, a Los Angeles-based private equity firm that recently acquired the tenant. Fundamental Income, a Phoenix-based net-lease real estate platform backed by a fund managed by Brookfield Asset Management (NYSE: BAM), acquired the portfolio.

The portfolio is triple net leased on a long-term basis to AMICO, a North American leader in the design, manufacture and fabrication of high-quality industrial floating and grating, expanded and perforated metals, architectural meshes and security products worldwide. The portfolio includes AMICO’s headquarters and manufacturing space at 3240 & 3245 Fayette Ave. in Birmingham. Additionally, the 7300 West Sunnyview Ave. building is in the Central Valley community of Visalia and serves as the company’s chief manufacturing and distribution facility for perforated metal products. The portfolio is rounded out with a manufacturing facility at 209 Glaser Dr. in the southern Louisiana city of Lafayette.

The portfolio is in infill industrial markets, and the location caters to the specific product and fabrication demands of their particular geographic marketplace. Each market is dynamic with low vacancy, attractive rent growth and at least 100,000 residents within a five-mile radius.

The JLL Capital Markets team that represented the seller was led by Senior Director Nicholas Foster and Analyst Bradley Whiting, along with local coverage in the Southeast from Senior Vice Presidents Greg Riera and Allen Allen Garstecki.  

“The market for industrial sale leasebacks of scale is extremely competitive, and this opportunity generated significant interest from a wide array of capital sources,” Foster said. “Our success in this transaction is due in large part to the strength of the credit and sponsor, and we were excited to achieve solid results with a great capital partner in Fundamental.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Pacific Avenue Capital Partners is a Los Angeles-based private investment firm focused on corporate divestitures and other complex situations in the lower middle market. Pacific Avenue has extensive M&A and operations experience allowing the firm to navigate complex transactions and unlock value through operational improvement, capital investment, and accelerated growth. The senior members of the Pacific Avenue team have closed more than 90 transactions, including 45 corporate divestitures, across a multitude of industries. Pacific Avenue takes a collaborative approach in partnering with strong management teams to drive strategic change and assist businesses in reaching their full potential. For more information, please visit pacificavenuecapital.com.

Led by seven investment partners with over 50 years and $15 billion of cumulative transaction history, Fundamental Income is a net lease platform focused on investing in single-tenant commercial properties, net leased to businesses operating in a wide variety of industries that directly or indirectly serve the US consumer. Fundamental Income provides real estate capital solutions and sale-leasebacks to businesses and business owners with established and growing operations across the United States.

Separately, Fundamental Income is also the Founder, Sponsor, and Index Provider to the NETLease Corporate Real Estate ETF (NYSE arca: NETL), which seeks to track the performance of the Fundamental Income Net Lease Real Estate Index (NETLXT) calculated by NASDAQ. For more information, please visit fundamentalincome.com.