Sale-Leaseback in Long Beach, California

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CLIENT Molina Healthcare, Inc.
LOCATION Long Beach, CA / Columbus, Ohio
SERVICES Corporate Representation
Asset Management
Financing: Capital Raised
Title Services
Legal
PROPERTY SIZE Long Beach, CA (460,843 SF)

Columbus, Ohio (160,181 SF)

TOTAL SALE PRICE $158,625,566

ACCOUNT OVERVIEW

Damian McKinney met Dr. David Molina in 1989 in Long Beach, CA. At the time Molina Healthcare was occupying approximately 10,000 square feet. McKinney and Molina established a long term relationship which has grown to encompass over a million square feet and over 16 states nationwide.

In December 2011 McKinney represented Molina in the purchase of its 460,843 SF headquarters in Long Beach, CA and in 2012 McKinney represented Molina in the purchase of a 160,181 SF office building in Columbus, OH.

 

SALE-LEASEBACK STRATEGY

In anticipation of the increased demand for its services resulting from the implementation of “Obamacare,” Molina instituted a corporate growth strategy. To assist in funding Molina’s growth objectives, McKinney advised on the possibility of unleashing the value in Molina’s real estate assets via a sale-leaseback transaction.

Prior to entering the market, McKinney helped to position the assets through active property management and oversight of capital improvement projects. Additionally, McKinney worked with Molina on a plan for timely and efficiently occupying vacant space throughout the buildings.

 

TRANSACTION

Working with a team of investment advisors, attorneys, and Molina’s corporate staff, McKinney coordinated the sale-leaseback of the Long Beach and Columbus properties in June 2013 to Angelo Gordon & Co. for $158,625,566.

The McKinney team worked diligently throughout the process, from the letter of intent through the execution of the final transaction documents. McKinney advisors spearheaded the due diligence process, and actively engaged with the buyer and its lenders to facilitate the review and understanding of the facilities.

RESULTS AND BENEFITS

– Based on the initial purchases and ultimate sale, Molina made ROI beyond typical margins
– Molina is able to re-invest “locked” capital into its core business
– Molina retains control of its real estate assets to implement consistent, long term corporate facilities strategy.