DWG Capital Partners, Inc., a fully integrated commercial real estate investment firm, acquired a single-tenant industrial property near Spartanburg, S.C., in a sale-leaseback transaction.
2701 Highway 56 in Pauline, S.C., is a 72,705-square-foot property situated on 18.6 acres in one of the fastest-growing metropolitan areas in the Southeast. Built in 1984, the building serves as a distribution center for Lancaster Distributing Company (Lancaster), which will continue to occupy the property on a long-term NNN lease.
Andrew Sandquist and Tyrell McGee with Newmark represented the seller in the transaction. Judd Dunning, president of DWG Capital Partners, secured fixed-rate acquisition financing via Simon Miller of Endaxi Capital Partners, locking in a favorable interest rate ahead of last year’s increase in lending rates.
“This acquisition continues the strategic expansion of DWG’s portfolio of net-leased industrial assets with a preemptive deal that enabled us to save significantly in our final mortgage rate pricing,” said Dunning. “We continue to evaluate new opportunities to acquire well-tenanted properties. Lancaster is an American success story.”
Lancaster was founded in 1953 by George Lancaster, who stocked paint brushes in a spare bedroom of his home and would hand deliver or ship them via the U.S. Postal Service. Today, the company is the premier paint sundry distributor of North America, South America and the Caribbean.
The facility’s strategic interstate location in the Greenville-Spartanburg metropolitan area between Atlanta and Charlotte means that almost half of the U.S. population is within a day’s drive. The area’s network of highways, airports, seaports and railroads makes it ideal for businesses to efficiently reach their suppliers and markets.
DWG Capital Partners is actively looking to expand its portfolio, targeting $300 million in new NNN assets, specifically sale-leaseback and value-add industrial acquisitions. Recent purchases include T & T Machine’s 68,650-square-foot manufacturing facility in the Cleveland area and a two-building Austin, Texas facility occupied by steel fabricator Austin Iron.
“DWG Capital Partners is constantly evaluating deals across the U.S. to assist owner-operators seeking to be further capitalized for further expansion,” stated Dunning. “As institutional buyers slow down, we believe that the M&A-driven industrial sector will continue to benefit from sale leasebacks, which provide off-balance-sheet operating capital to fund future growth, and we are here to serve those needs.”
