The Client
A national retailer maintained a real estate portfolio that included both owned and leased properties located throughout North America. The client successfully operated many stores throughout a major Mid-Atlantic market and was eager to continue its dominant market share. As options to purchase operating stores became available, CPD helped our client maximize the potential value creation.
The Assignment
CPD’s client wanted to purchase an existing store from its current landlord and then initiate a sale/leaseback transaction. The client’s financial team completed its analysis and determined that the asset should be acquired and then sold to a net lease investor.
The project presented the parties involved with several challenges – all of which needed to be identified, analyzed and resolved during the due diligence, entitlement, acquisition and third-party documentation process.
CPD was engaged to assist in identifying the appropriate investor well in advance of the client’s property purchase; negotiate and finalize a new long-term lease that more accurately reflected the client’s current company policy and market standards; advise on multiple aspects of the transaction; and ensure that all deadlines were met.
As a result of the combined purchase and sale transactions, CPD’s client will have saved more than $17 million in cash payments over the term of the lease. This multi-faceted transaction enabled the client to benefit from a value creation in excess of $10 million.