LCN Capital Partners Acquires Mercer Foods’ Mission-Critical Headquarters and Freeze-Drying Facility in Modesto, California
The property serves as the primary production, warehouse and headquarters facility for Mercer Foods, the premier freeze-drier of fruit and vegetable products in the United States.
New York – February 24, 2021 – LCN Capital Partners (“LCN”), a private real estate investment firm and a recognized leader in the primary corporate sale-leaseback and build-to-suit markets, today announced that it has completed the acquisition of Mercer Foods’ (“Mercer”) mission-critical headquarters, food processing, and manufacturing facility in Modesto, California. Mercer is the leading producer of freeze-dried fruits and vegetables in the United States.
The property, which totals approximately 240,000 sq. ft. and encompasses Mercer’s entire US real estate footprint, has been leased back to Mercer for a period of 20 years with fixed annual rental increases.
Edward LaPuma, Co-Founder and Managing Partner of LCN Capital Partners, said: “We are excited to announce the closing of the Mercer sale-leaseback. There is strong demand for high quality cold storage and food processing facilities, and we look forward to adding similar facilities to our growing portfolio. We are thrilled to have Mercer as a long-term tenant and look forward to helping them continue to grow their business.”
Rik Jacobs, CEO of Mercer, added: “The completion of the sale-leaseback marks the beginning of what we believe will be a long and beneficial relationship with the LCN team. The Modesto, CA facility has been in the Mercer family for over 23 years. It serves as the major operational hub of our company. After celebrating Mercer’s 40th anniversary in 2020, we are excited to begin 2021 with the LCN team.”
About Mercer Foods
Mercer Foods is a leading producer of natural and organic freeze-dried fruits, vegetables and other foods and ingredients. The company was founded in 1980 by freeze dried industry pioneer Jim Mercer, holder of many different patents in food technology. From its beginnings in the technology center of Palo Alto, California, the company has grown and expanded significantly at its current home in the food industry hub of Modesto, California. Mercer Foods is California-based and also globally connected, sourcing hundreds of different foods and crops both nearby in the fields of California and also worldwide. With its roots in innovation and this diverse source of supply, Mercer Foods creates the highest quality freeze dried foods and ingredients, which the company provides to hundreds of food manufacturers and other customers. For more information, visit www.mercerfoods.com.
About LCN Capital Partners
Founded in 2011 by Edward V. LaPuma and Bryan York Colwell, LCN has in excess of $5 billion in assets under management on a U.S. Dollar denominated basis, across its three U.S. Dollar denominated funds and three Euro denominated funds. The LCN team has collectively completed more than 250 sale-leaseback and build-to-suit investments exceeding $12 billion in cost. Headquartered in New York, NY, LCN also has offices in London, Amsterdam, Cologne and Luxembourg.
LCN Capital Partners is a recognized leader in the primary sale-leaseback and build-to-suit markets. In these primary markets, investments and leases are originated and negotiated directly with the corporate users of mission critical real estate. LCN delivers a long-term solution for its tenant-clients by providing a non-bank capital resource, efficient monetization of on-balance sheet real estate, continued operational control of key assets, enhanced financial metrics, and potential tax benefits. LCN’s investing partners benefit from the long-term and inflation protected distributions that the LCN Funds provide. For more information, please visit: https://www.lcnpartners.com/.
Gasthalter & Co.