GardenCore
Sale-leaseback closed in conjunction with private equity’s firm acquisition of the business
Tenant Description: A leading U.S. manufacturer of lawn and garden consumables
Transaction Type: Sale-leaseback*
Location: U.S. (24 states)
Facility Type: 43 manufacturing facilities
W. P. Carey completed the sale-leaseback of 43 manufacturing facilities located in 24 states. The portfolio is triple-net leased to newly branded GardenCore (formerly Oldcastle Lawn & Garden), a leading U.S. manufacturer of lawn and garden consumables, offering a broad portfolio of mulch, soil, stone and lime products.
Pacific Avenue Capital Partners, a leading private equity firm, recently acquired the business as part of a carveout from CRH’s packaged mulch, soil and stone business.
The portfolio represents the entirety of GardenCore’s owned real estate, contributing a significant portion of the company’s revenue. The facilities would be difficult to replicate given their significant acreage and unique zoning requirements. GardenCore has also made significant investments in mulching, bagging and packaging equipment at these facilities.
The portfolio is master leased for a term of 20 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 highlights W. P. Carey’s ability to execute large, complex portfolio sale-leasebacks with speed and certainty. With 43 mission critical facilities across 24 states, this was a highly coordinated transaction that required deep underwriting expertise, structuring flexibility and the capacity to deploy significant capital. As M&A activity rises, we are well positioned to support private equity firms in unlocking significant capital through sale-leasebacks of portfolio-company real estate.