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Fleet Farm Portfolio
$40,750,000 Acquisition Financing
Green Bay, WI | Stevens Point, WI | November 2021
Thorofare Capital has funded a $40,750,000 portfolio loan, across two transactions, for the acquisition of two Fleet Farm stores located in Green Bay and Stevens Point, Wisconsin. The properties were encumbered with new, 20-year Absolute Net leases simultaneously with closing and acquired by affiliated borrower entities. Each of the properties are expected to be individually refinanced with long-term, fixed rate CMBS loans in the near future..
The sponsor was seeking a “quick-close” solution in order to acquire the assets in an off-market transaction from an institutional asset manager that had originally purchased all Fleet Farm locations in a Sale Leaseback from parent company KKR & Co. Inc.
The Stevens Point, WI Fleet Farm totals 170,642 SF, situated on 21 acres of land and includes both an auto service center as well as a fueling station. The Green Bay, WI Fleet Farm totals 240,100 SF, situated on 25.6 acres of land and includes both auto service center as well as a fueling station. Both locations report their sales, which provide an attractive EBITDAR coverage and positive growth trends.
Fleet Farm (formerly Mills Fleet Farm) is an American retail chain of 47 stores totaling approximately 10 million square feet in Minnesota, Iowa, Wisconsin, North Dakota, and South Dakota. The Appleton, WI based retailer was founded in 1955 and remained family owned until their sale in 2016. The stores range in size from small hardware stores to 200,000+ square foot retail centers. Fleet Farm specializes in the sale of hunting and fishing equipment, appliances, household goods, automotive goods, clothing, footwear, toys, food, hardware, garden and farm supplies. Most locations also include an auto service center, gas station and car wash. Fleet Farm remained family owned until 2016 when they sold to private equity firm KKR for $1.6 billion.
The sponsor is a Las Vegas-based, private real estate investment firm focused on various development projects, acquisitions of stabilized and aggregation of NNN-leased properties for high net worth investor syndications, trusts and institutional investors.