Working with Private Equity to Monetize Industrial Real Estate

My family has been in the real estate business since the 1970s. With a long term deep focus on industrial real estate, we work nationwide and often get involved with private equity and their portfolio companies at various times during investment cycle.

Often during the initial investment during the LBO stage, we will arrange a sale-leaseback for core assets as we have a deep stable of buyers that are interested in owning this real estate. This allows the ownership to recognize 100% of the value of the real estate, which reduces the equity commitment of the private equity firm, thus subsequently reducing their weighted average cost of capital, which leverages the all important EBITDA multiple. We also work post acquisition with private equity firms needing to pay down shorter term debt or to fund working capital.

For non-core assets, we will arrange disposals, auctions, sell equipment and re-position environmental challenged sites. In some cases we will serve as value buyers and syndicate transactions.

On the corporate operating side for expansions into new markets, our site selection work has created some of the largest buildings in multiple states and we lean on our political background to drive Governors and their economic development teams to deliver the best incentive packages. We don’t work with everyone but are searching for high quality relationships as we are a very strong niche provider that can help a private equity firm increase its enterprise value.

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McGowan Corporate Real Estate Advisors