Net Lease Capital Joint Venture Acquires 275,000 Sq. Ft. Distribution Center

Net Lease Capital Advisors, Inc. as principal investor, along with its joint venture partner, a public pension fund, closed the purchase of a warehouse property located in a master-planned industrial park in Middleboro, Massachusetts. The joint venture is an all cash buyer and acquired the asset with no financing contingency.

The property is located at 154 Campanelli Dr. in Middleboro, Massachusetts, and serves as a warehouse, distribution and office facility for Broder Brothers, Co. The property is 100% leased to Broder, on an absolute net basis, for the next eight years. Broder is an S&P “B” rated manufacturer of generic, imprintable sportswear used by designers to create promotional products.

Net Lease Capital is a specialized net lease investment firm and principal buyer of single tenant triple net lease assets. Eyeing Broder’s dominance in its field, and the property’s strategic significance to Broder, Net Lease Capital viewed this property as a mid-to-long-term investment. Broder is considered one of the largest U.S. distributors of imprintable sportswear in the country, both in market penetration and in annual sales. In August of 2005, S&P upgraded Broder’s credit rating from “B-“ to “B”, owing to factors including: a trend towards promotional product spending vs. traditional advertising, increasingly competitive pricing resulting from advancements in the technology of embroidery and screen print equipment, and the favorable purchase pricing Broder enjoys due to large volume production.

The property holds strategic value for Broder which has been expanding its geographic reach and market share by acquiring competitors and consolidating product distribution. The building is located 32 miles outside of Boston and is well located for Northeast operations. Originally constructed in 2001, the property is an up-to-date distribution facility. “Because of its size, locale and modernity, it is the location best suited to support Broder’s continued expansion in the Northeast,” explains Net Lease Capital Senior Vice President Rick Greer.