Client Profile:

A Texas based retail developer

Client Objective:

The client had entered into a build to suit lease agreement with Gold’s Gym and sought (a) equity to finance land acquisition and construction of the building and (b) to insulate itself from possible market fluctuations and lock in profit prior to the delivery of the building to the tenant.

Project Challenges:

Identifying an investor willing to commit to a purchase price over a year prior to delivery while also funding capital at a reasonable cost to the client. In addition, the single use nature of the building and the non-investment grade, privately held tenant further diminished the investor pool.

Pegasus Services Involved:
  • Investment Sales
Pegasus Solution:

Pegasus Investments identified the leading institutional single tenant investors with the capability of entering into a forward purchase agreement while simultaneously funding a joint venture equity investment. Pegasus Investments ultimately leveraged its longstanding relationship with one of the largest, publicly traded, single tenant net leased REITs in the country to facilitate negotiations with the client.

Results:

S|T|O|R|E Capital Corporation (NYSE: STOR) entered into a joint venture equity investment and forward purchase commitment that fully satisfied the client’s objectives and enabled the client to timely deliver the building and continue to develop its relationship with the tenant.