Georgia-Pacific Closes $175M Sale-Leaseback

ATLANTA-This area’s commercial real estate investment market is ending the year on a high note. In one of the largest commercial real estate deals of its kind this year in the Southeast, Dallas-based Cardinal Capital Partners Inc. has acquired 38 Georgia-Pacific Corp. warehouses totaling 5.1 million sf in 26 states in a pre-tax deal valued at $175 million, or $150 million after taxes.

Cardinal will lease the space back to Georgia-Pacific on a long-term lease for an undisclosed sum. The deal is part of the previously announced sale by Atlanta-based G-P of a 60% controlling interest in Unisource to Boston-based Bain Capital. That deal was valued at $790 million.

The Cardinal-Georgia Pacific deal will be shown as a capital lease obligation on G-P’s financial statements.