Pennybacker Capital Management and M2G Ventures have acquired more than 1.2 million square feet of industrial and office space from Dallas retailer Tuesday Morning. No financial terms were disclosed. As part of the agreement, Tuesday Morning will lease back the industrial properties for two-and-a-half years and the corporate headquarters building for 10 years. M2G Ventures will assist with operating the portfolio.
AUSTIN, Texas, Jan. 19, 2021 /PRNewswire/ — Pennybacker Capital Management, LLC (Pennybacker), a leading real estate private equity firm, today announced it has partnered with M2G Ventures, a Fort Worth-based real estate investment and development company, to purchase more than 1.2 million square feet of industrial and office space from Dallas retailer Tuesday Morning.
The acquisition includes five of Tuesday Morning’s industrial distribution centers located along Inwood Road in Addison and Farmers Branch, totaling 1.1 million square feet, and its 105,000-square-foot corporate headquarters office at 6250 Lyndon B. Johnson Freeway in Dallas.
As part of the agreement, Tuesday Morning will lease back the industrial properties for two-and-a-half years and the corporate headquarters building for 10 years. M2G Ventures will assist with operating the portfolio.
“Tuesday Morning filed for bankruptcy last year, and our team was able to provide liquidity for a distressed retailer in a strategic growth market for us,” said Tim Berry, CEO of Pennybacker. “Going forward, we want to participate in similar transactions with companies entering into sale-leasebacks as a source for raising capital, paying down debt, and strengthening their balance sheets.”
The acquisition is part of Pennybacker’s value strategy and demonstrates its investment theme of identifying, purchasing, and adding value to well-located industrial properties in select U.S. growth markets that benefit from compelling fundamentals. Austin-based Pennybacker is quickly expanding its industrial holdings in the Dallas-Fort Worth area.
“We have strong conviction in dynamic growth markets like Dallas-Fort Worth, as these areas continue to experience rapid population and economic increases,” Berry said.
“Innovations in the way consumers receive goods and services, such as ordering online and picking up items from fulfillment centers, have changed the real estate market. There is greater demand for industrial space closer to the consumer, and by working with firms like Tuesday Morning, we can help improve their distribution and supply chain efficiency.”
ABOUT PENNYBACKER CAPITAL MANAGEMENT
Pennybacker Capital Management is a leading real estate private equity investment manager with offices in Austin, Denver, New York, and Nashville. The firm pursues value, credit and income and growth strategies across all real estate asset classes.
Pennybacker has a proven 12+ year track record of investing in and/or operating more than $3.3 billion of real estate value throughout the United States. To date, the firm has sponsored six discretionary value-add real estate private equity funds, two real estate credit funds, and four income and growth separate accounts. For more information, please visit https://www.pennybackercap.com.