Stan Johnson Company Completes 21-Property NNN Portfolio Sale For $57.0 Million
San Francisco, CA, May 15, 2018 – Stan Johnson Company, one of the nation’s premier net lease brokerage firms, has completed the sale of a Gateway Academy portfolio. The portfolio consisted of 21 single tenant net lease childcare assets being operated by one of the largest for-profit childcare organizations in North America. The properties were located in Colorado, North Carolina, and South Carolina.
Stan Johnson Company’s team of Milo Spector, Chris Lomuto, and Matt Lipson represented the seller, who not only was a developer of the real estate, but a co-founder of Gateway Academy before its operations were sold.
The portfolio was purchased by a Texas-based institutional investor on May 9, 2018 for $57.0 million, making it one of the largest childcare portfolio transactions to close in recent years. It was encumbered by CMBS debt and had to be sold intact due to significant defeasance penalties that would have been triggered by carving up the package into smaller pieces. “It really limits your buyer pool when a portfolio can’t be sold individually. We needed a buyer that could not only purchase a deal of this size but could meet the strict criteria necessary to complete a CMBS debt assumption,” said Milo Spector, Associate Director. “I’m proud to say we were able to generate multiple offers and ultimately find the right buyer that was able to close on the deal.”
“Without question, the challenge on this deal was the assumption of the securitized debt,” said Chris Lomuto, Associate Director. “It’s a complex process that takes a real commitment from both the buyer’s and seller’s teams. Add to that some opportunities that the buyer was able to uncover that were accretive to their investment strategy, and you have a recipe for a relatively complex transaction that may not have even been possible if it weren’t for the continued efforts of the entire deal team.”
Lomuto adds, “It was a win for both sides and really a case study for both debt assumption and for what can be accomplished when you have a team of strong people who are committed to a deal.”
About Stan Johnson Company:
Stan Johnson Company is one of the nation’s leading commercial real estate brokerage and advisory firms that focuses exclusively on net lease transactions involving retail, office, industrial, healthcare and sale-leaseback properties. The firm provides acquisition, disposition, capital markets and advisory services for institutions, developers, investment funds and private investors across the United States. Now in its fourth decade of serving as a trusted advisor to its valued clients, Stan Johnson Company has completed more than $30 billion in transactions nationwide and is regarded as the Net Lease Authority®. To learn more about Stan Johnson Company, please visit the recently enhanced website at www.stanjohnsonco.com.