Patriot Commons, East Greenwich, RI
Leggett & Platt consolidated 465,448 Sq. Ft. of its manufacturing operations outside the Greater Toronto Area (GTA). This strategic decision left the Fortune 500 Company with two vacant industrial assets for sale in Toronto’s Etobicoke submarket. The first, 80 Jutland Ave., was completely vacant and the second, 800 Islington Ave., was partially occupied by Leggett. Etobicoke is a large infill market in the GTA historically characterized by industrial uses. In recent years, the area experienced tremendous revitalization in the retail and residential sectors which attracted developers interested in the changing the uses for both these sites. Since Leggett was not in the real estate business, management did not want to endure the time and risks associated with costly approvals that may never come to fruition, so they would only consider prospective “industrial” buyers. Furthermore, Leggett sought to quickly monetize this non-strategic real estate and sell the properties together in a single transaction to help meet second quarter financial objectives. Beyond transaction efficiency, Leggett sought indemnity from environmental issues the properties amassed over the years. The disconnect between Leggett’s needs and the demands of the market, made it clear the company needed to solicit buyers outside of the local market to dispose of these properties.
Leggett asked Patriot to evaluate the Etobicoke assets as a package and consider an “as-is” sale to be closed by a defined date. Patriot’s history of partnering with large corporations to acquire portfolios, often with diverse geography, size and risk profiles, provided the seller with surety of close and overall helped to accelerate the disposition of the Leggett portfolio. Patriot executed the transaction by Leggett’s 2007 deadline and closed on both assets with the existing zoning and environmental challenges in place. In addition to providing the seller environmental indemnity, Patriot’s extensive experience working with environmentally contaminated sites fostered a development plan that addressed the site’s remediation of existing issues.
As part of Patriot’s acquisition strategy, 80 Jutland will be marketed immediately for sale to a single user, while a redevelopment and leasing strategy has been put in place for 800 Islington as a single or multi-tenant facility. Currently, 80 Jutland is a 126,475 Sq. Ft., single-story industrial building on 5 acres. It contains 21,500 Sq. Ft. of office space and approximately 105,000 Sq. Ft. of industrial space. 800 Islington is 338,973 Sq. Ft. with a two-story, 40,000 Sq. Ft., office component with approximately 300,000 Sq. Ft. of 18’ clear warehouse space on 16.75 acres.
Leggett & Platt
Interim Partial Sale/Leaseback
Manufacturing & Warehouse
465,448 Sq. Ft.