Novus Foods
Transaction demonstrates W. P. Carey’s ability to provide flexible, end-to-end real estate capital solutions
Tenant Description: A leader in the refrigerated food and snacks market
Transaction Type: Sale-leaseback* and build-to-suit*
Location: Ohio
Facility Type: 2 industrial facilities
W. P. Carey completed the sale-leaseback of a 66,000-square-foot food processing facility in Ohio. The transaction also included a commitment to fund an expansion to the existing facility and a build-to-suit commitment for a new, Class-A distribution facility located on the same campus. Construction is expected to be completed in November 2026.
The facility is triple-net leased to Novus Foods, a leader in the refrigerated food and snacks market. With an acquisition-based growth strategy, Novus has acquired and integrated market-leading brands that produce foods that are well positioned in their respective product categories. Novus Foods is backed by private equity firm CapVest and benefits from its significant investment in the company as well as the broader food market.
The existing facility is critical to the company’s operations and business, generating a significant portion of the company’s revenue. The new distribution facility will serve as the company’s main cross-dock distribution location, enabling them to bring more finished products to in-house distribution.
The portfolio will be subject to a long-term, triple-net master lease 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.
*In a build-to-suit, W. P. Carey funds and manages the construction of a new facility or the expansion of an existing one custom built to meet the unique specifications of a prospective or existing tenant. Upon completion of construction, the company enters into a long-term net lease with W. P. Carey, while securing full operational control of the new or expanded facility.
Partnering with W. P. Carey has been instrumental in accelerating our growth and expanding our operational footprint. Their collaborative approach and ability to deliver flexible, long-term capital solutions made them an ideal partner for this transaction.
We’re proud to support Novus Foods’ continued growth through strategic real estate investment and long-term partnership. This transaction exemplifies our ability to deliver flexible capital solutions – from sale-leasebacks to build-to-suit financing. By combining these elements in a single transaction, we served as a true one-stop real estate partner, and we look forward to continuing to support Novus Foods as their business grows and evolves.