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Sunstate Crafts $36M Sale/Leaseback

TEMPE, AZ-The heavy equipment operator strikes a 20-year lease with four renewal options for 25 properties in seven states. As the ink dries, the Princeton, NJ-based buyer brings the package to market, roping 22 purchase contracts for the turnaround play.

By Beverly Ford | Updated on December 03, 2003

TEMPE, AZ-A Tempe-based heavy equipment supplier has sold off a 25-property portfolio for $36.4 million under an arrangement that will allow the firm to lease back the properties for 20 years with four, five-year renewal options.

Sunstate Equipment Co. LLC the country’s 10th largest supplier of heavy-duty, rental equipment, sparked heavy interest when it put the single-tenant industrial properties on the market about two months ago, drawing at least 10 “very competitive” offers from entities ranging from publicly traded REITs, a National Canadian merchant builder and private institutional buyers, Ray Fontaine in Marcus & Millichap’s Phoenix office tells GlobeSt.com.

Princeton, NJ-based Sovereign Investment Co.’s $36.4-million offer took home the prize, however, besting the competition with a near-priced bid and a proven ability to perform.Fontaine says the deal, which came together in 45 days, gave the buyer strategically located properties in California, Arizona, Nevada, Colorado, Utah, Oklahoma and Texas.

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