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Sale-Leaseback Part of State Farm Strategy

The sale-leaseback structure has benefited both parties with steady cash flows generated from the long-term lease with State Farm and stable, long-term ownership and management for the tenants.

By Lisa Brown | Updated on December 13, 2017

CityLine The 2.2 million-square-foot State Farm campus in CityLine was acquired last fall.

RICHARDSON, TX—Another sale-leaseback of a 2 million-square-foot property in the Southwest signals the execution of a strategy State Farm designed as a priority several years ago, says Larry P. Heard, CEO of the Transwestern family of companies. The closing of the Tempe, AZ transaction is the third in a series. This transaction resembles the acquisition of the 2.2 million-square-foot State Farm campus in Dallas’ CityLine project last fall and the 591,000-square-foot State Farm campus in Atlanta this summer.

Corporate Properties Trust III LP closed on the acquisition of the property in a sale-leaseback with State Farm Auto Insurance Co., according to Transwestern Investment Group. Transwestern believes the sale-leaseback structure has benefited both parties. Charles Hazen, president of Transwestern Investment Group, recently discussed the sale-leaseback model in this exclusive.

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