Sale-leaseback with leading specialty food manufacturer
Premium Brands
W. P. Carey partners with Premium Brands to unlock capital to strengthen balance sheet and reinvest into core business
Tenant Description: Publicly traded specialty food manufacturer serving over 20,000 customers across 90+ brands
Total Investment: $166 million
Transaction Type: Sale-leaseback*
Location: Tennessee
Square Footage: 350,000+ square feet
Facility Type: Food processing facility
Green Features: Powered by 100% renewable energy and is expected to receive LEED Silver certification
In June 2025, W. P. Carey completed the sale-leaseback of a state-of-the-art food processing facility located in Tennessee. Totaling 350,000+ square feet, the facility is triple-net leased to a wholly owned subsidiary of Premium Brands, a leading manufacturer and distributor of specialty food products.
With construction completed in May 2025, the Class-A facility features 40’ clear heights, 27 dock doors and over 250,000 square feet of cooler and freezer space. The facility is powered by 100% renewable energy and is expected to receive LEED Silver certification.
The facility was built to serve as the tenant’s new primary food production facility, providing a significant increase in production capacity to serve existing and new customers. The tenant chose the location of the facility for its proximity to customers, access to skilled labor and highway accessibility. It is triple-net leased for a term of 25 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.
By unlocking the value of our real estate, we’ve been able to secure capital to strengthen our balance sheet and reinvest into our core business.
We’re thrilled to partner with Premium Brands on this transaction, which highlights our conviction in the food production sector and our ability to structure real estate solutions that support operational growth for market-leading companies. The facility’s strategic location, mission-critical use, environmental features and long-term lease — coupled with a best-in-class operator — make it a great addition to our portfolio.