CHALLENGE
Dewey’s Bakery recently received a sizeable private equity investment to facilitate a high-growth expansion plan for the company. Part of this initiative allowed for greater emphasis on investments in new equipment, product lines, and efficiencies. While there were benefits to owning their own real estate, ultimately the leverage and multiples that the company could achieve by utilizing the money on expansion and equipment was far greater than the return they were achieving on the money with their real estate. For that reason, they decided to consult with Linville Team Partners to better understand the market conditions and a sales price to be able to present to their board.
ACTION
LTP put together a sale/leaseback strategy for Dewey’s and marketed the property to investors nationally. The marketing brochure included professional photography including drone photos and extensive background on Winston-Salem as well extensive info on Dewey’s, their many achievements, and their plans for the future.
RESULT
The rapidly rising interest rate environment made this assignment challenging but ultimately multiple offers were achieved. The first purchaser did not end up closing, but the deal quickly pivoted to a back-up offer which consisted of a local investor group that had interest in the property and ultimately consisted of 10+ investors coming together with the assistance of Linville Team Partners. It was a true
win-win for all parties involved.