CHICAGO, IL – April 9, 2021 – STREAM Capital Partners, LLC, a leading international sale-leaseback advisory firm, has arranged the sale and leaseback of a freezer/cooler, food production facility in Montréal, Québec.
The facility totals 76,434 square feet and is occupied by a family-owned producer of frozen desserts and pastries. The mission-critical facility houses the entirety of the company’s operations, and the business has invested over $7 million into the building systems and production equipment. The company will use the proceeds from the transaction to facilitate future growth and invest in various strategic initiatives it is currently pursuing.
Chelsea Mandel of STREAM Capital Partners represented the seller in the transaction. Mandel is very active in the food and beverage sector and is seeing robust investor appetite for food-related, freezer/cooler facilities. She has closed over $85 million in sale leaseback transactions of freezer/cooler facilities in the last 3 months. Mandel said of the transaction “This transaction is another great example of the tremendous demand we’re seeing from investors for food-related industrial product. In the sale leaseback world, the best-case scenario for investors is having a tenant who will never want to leave. Food-related real estate checks that box as typically the tenant has invested heavily into the facility fit-out and has tons of heavy production equipment that could be prohibitively expensive to move. We call this “tenant stickiness” or having substantial “bolt-down” costs and it’s a quality that investors certainly look for when underwriting single-tenant investment opportunities.”