Sale-leaseback with leading flexible packaging producer
Leading Producer of Flexible Packaging
Sale-leaseback enables private equity firm to unlock capital to reinvest in portfolio company’s future acquisitions
Tenant Description: Leading producer and supplier of custom flexible packaging for the healthcare, food, janitorial and industrial end markets
Total Investment: $20 million
Transaction Type: Sale-leaseback*
Location: Tennessee
Square Footage: 211,000 square feet
Facility Type: Manufacturing facility
In June 2025, W. P. Carey completed the sale-leaseback of a manufacturing facility in Chattanooga, Tennessee. Totaling 211,000 square feet, the facility is leased to a rapidly growing producer of custom flexible packaging owned by a New York City-based private equity firm.
The facility is essential to the tenant, producing products that generate a significant portion of the company’s revenue. The tenant has also made significant investments into the build-out and equipment at the facility, making it highly functional and difficult to economically replicate.
It is located in the Chattanooga industrial market, where limited developable land for industrial use supports low vacancy and long-term rent growth. The facility is triple-net leased for a term of 15 years with fixed annual rent increases.
*In a sale-leaseback, a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control.
“This transaction exemplifies our continued focus on acquiring mission-critical assets in strong industrial markets. With a high-growth tenant and a long-term lease in place, this facility aligns well with our investment criteria and is a great addition to our growing portfolio.”