84 Lumber sells property to REITs, keeps stores open
An article in the Buffalo News reported that 84 Lumber has sold several properties in New York State in lease-back arrangements that will allow the pro dealer to raise cash and continue to operate its existing lumberyards.
Hardy Management Co. has recently sold a location in Wheatfield, N.Y., to Spirit SPE Portfolio 2007-2 LLC, an entity owned by Spirit Finance Corp. of Scottsdale, Ariz., for $560,000, the newspaper reported. Spirit also paid $640,000 for a property in the town of Tonawanda on Military Road, and $900,000 for the Taylor Road store in Orchard Park.
In late April 2007, Spirit, an REIT that says it focuses on "single-tenant, operationally essential real estate," conducted a lease-back deal with 84 Lumber that involved 53 stores and one truss plant. Spirit purchased the property for $200 million, and a subsidiary of 84 Lumber signed an initial 20-year lease for the properties.