Fundamental Income’s Net Lease Platform Completes First Deal
The $50 million sale leaseback of a Carvana inspection center serves as the company’s first net lease platform deal, backed by Brookfield Asset Management.
PHOENIX, AZ – Phoenix-based, net lease real estate platform, Fundamental Income has acquired a 75-acre facility in Tolleson, AZ, from the e-commerce platform, Carvana, in a $50 million transaction.
The acquisition represents Fundamental Income’s first deal on its $500 million net lease platform, backed by Brookfield Asset Management. The firm received the initial equity commitment from a fund managed by Brookfield Asset Management in April.
Carvana will lease the vehicle inspection center back from Fundamental Income, and will continue its operations in utilizing the property as a reconditioning and photography facility for vehicles that are retailed on Carvana.com.
As a main component of Carvana’s nationwide distribution network to buying and selling used-cars, the property serves as one of the company’s nine inspection centers in the US.
“This acquisition creates a long-term partnership and provides capital to an innovative business that is growing at hyper speed,” states Alexi Panagiotakopoulos, Fundamental Income’s chief investment officer. “Our primary goal is to provide critical growth capital to businesses that serve the US consumer, and this transaction does just that.”
Fundamental Income will continue to focus on sale leasebacks; investing in single-tenant properties net leased to operating companies throughout the US.
“Sale lease-back transactions continue to be an important part of our capital strategy as we expand our inspection and reconditioning infrastructure footprint,” says Carvana VP of capital markets, Michael McKeever. “These centers play an integral role in growing our business while continuing to deliver high quality vehicles to our customers. We are pleased to be part of this transaction with Fundamental and look forward to more opportunities to work together.”