Dallas-based Spirit Realty Capital paid $9.2 million to purchase an Orlando warehouse from paper distribution company Mac Papers, as part of a larger sale leaseback agreement.
The paper distributor is based in Jacksonville and has 19 branches throughout the southeast. It’s Orlando warehouse facility spans about 100,000 square feet and is located at 7601 Kingspointe Parkway.
The deal is part of a sale leaseback agreement between Spirit Realty and Mac Papers. The contract happened in connection with New York-based private investment firm, Monomoy Capital Partners, acquiring Mac Papers last week.
Krupa Shah and Jason DeWitt of JLL Capital Markets structured the real estate sale on behalf of Monomoy.
The Orlando facility was built in 1999. Mac Papers acquired the property in 2000 for $3.8 million.
Mac Papers generates over $600 million in annual sales. In addition to paper, the company also distributes packaging materials and equipment, wide format products, facility supplies and office products.
Spirit Realty is a net-lease real estate investment trust that specializes in acquiring properties leased to single-tenant retail, distribution and service-oriented companies.
This week, its president and CEO Jackson Hsieh released a statement to its shareholders addressing the onset of the COVID-19 pandemic.
In his letter he said the company’s share price has fallen “dramatically” as investors grapple with the length and breadth of the resulting economic disruption.
In response, he told investors the company is working with tenants to ensure their success.
“To date, we have had very few requests from tenants for rent deferrals,” he said.
At least 58 percent of the company’s rents are derived from tenants with about $1 billion in sales and about 89 percent of tenants have at least $50 million in sales.
“We continue to believe that larger tenants, especially publicly owned, have a greater ability to weather financial shocks,” Hsieh said.