Jackson Hsieh recently joined Spirit Realty Capital as president and COO.

DALLAS—Spirit Realty Capital said Wednesday afternoon it had closed on the sale of 108 properties to a subsidiary of 84 Lumber Co., its second largest tenant. The net lease REIT's $205.7-million sale effectively reverses a sale-leaseback deal dating back nine years, when what was then known as Spirit Finance Corp. purchased 53 wholesale/retail lumber sales and supply centers and one truss manufacturing plant from 84 Lumber affiliates for $200 million.

Jackson Hsieh, the Spirit president and COO who recently came aboard from Morgan Stanley, says Eighty Four, PA-based 84 Lumber is “a legacy tenant that had a very economically favorable asset purchase option that was granted when the original transaction closed in 2007. By proactively restructuring this agreement to allow for an early option exercise, Spirit earned a $5-million amendment fee, eliminated the ongoing uncertainty as to the timing of an increasing in the money option and has de-risked its portfolio by reducing exposure to one of the most cyclical industries in the company's portfolio.” The original first purchase option date was April 30, 2017.

That industry is the building materials industry, which has seen its recession-driven ups and downs since the '07 SLB was finalized. 84 Lumber is a 60-year-old, privately held supplier of building materials and manufactured components for single-family and multifamily residences and commercial buildings, operating across 30 states.