The Story
On June 30, 2003, The State of Washington Department of Natural Resources (DNR) acquired the Jansport Distribution Center from DP Mountain View, LLC for $12.9 million. This facility was fully leased to Jansport, Inc., a recreational sports goods manufacturer, on a 10 year lease. This lease was guaranteed by Jansport's parent company, VF Industries, a Fortune 305 company. The building is a 200,500 SF of office/warehouse, state-of-the-art distribution center newly constructed and available for Jansport's occupancy in February, 2002.
The DNR acquired this asset with the intent to hold it long term in its trust account, which generates income for the State of Washington public school general education fund.
The challenge in this assignment was for Pacific Real Estate Partners to execute the goals of the Seller in achieving a sale price in the top end of the range of values, otherwise they would choose to simply hold on to what they felt was a tremendous real estate asset. However, if a buyer could be procured that was willing to place the equivalent, strong valuation on this opportunity, the Sellers would sell. Through a strong relationship that the PREP team had with the DNR, we identified the Jansport Distribution Center as an ideal, long term leased, single tenant, bondable credit, industrial investment for the DNR.
After 16 months of negotiation, with several starts and stops, the DNR closed on the acquisition of this terrific asset with the full approval of the DNR Board of Directors. The brokerage team of Les Boudwin and Steve Schwartz, started with strong relationships with both the Sellers and the Buyers, and were able to achieve the goals of both in this exciting sale.
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