MAG Capital Partner, LLC has acquired an approximately 139,150-square-foot industrial portfolio through a long-term, sale-leaseback transaction. Located at 5998 Eden Drive in Haltom City, the eight-building, 7.25-acre property is tenanted by local aerospace firm Fore Aero. The seller, San Francisco-based private equity firm P4G Capital, acquired Fore Aero and the real estate in 2017.
“The acquisition came together despite the headwinds brought on by the current economic times. Great real estate is still out there and the DFW market is one of the best, if not the best market, in the country,” said MAGCP principal Andrew Gi. “We are pleased to be in partnership with Fore Aero and believe we can both continue to provide economic fuel to the local economy.”
In 2017, MAGCP acquired the real estate tenanted by Gamma Aerospace, in another sale leaseback transaction in the Dallas-Fort Worth area.
“We are always excited to grow our investment in North Texas,” said MAGCP principal Dax T.S. Mitchell, a DFW local and seventh generation Texan. “Closing a transaction like this in current times has been both uniquely challenging and rewarding.
“The relationship between tenant credit, finance and tangible assets is definitely shifting. We believe sustained success in commercial real estate, especially the single tenant net-leased space, depends vitally on continuing to evolve our own understanding of how these components interplay and influence risk and yields.”
Bryan Huber with SAB Capital in New York represented the sellers in the transaction. MAG Capital Partners was represented by Andy Rogers of Kelly Hart of Kelly Hart & Hallman LLP’s Fort Worth office and Mary Garnett of Barnes and Thornburg, LLP’s Los Angeles office.
MAG Capital Partners has also completed the acquisition and 20-year leaseback of a 28,500-square-foot baby food manufacturing facility in California’s Central Valley. Led by principals Mitchell and Gi, MAG Capital Partners purchased the fully-leased property from Initiative Foods, the largest private label baby food manufacturer in the United States. The built-to-suit, state-of-the-art automated manufacturing facility at 1945 Industrial Way, Sanger, California, was completed in November 2019 for the award-winning baby food maker. Initiative Foods produces over 50 varieties of premium organic products made from locally sourced fruits and vegetables. The company was founded in 2002 in California’s Central Valley where it has immediate access to freshly harvested organic products such as squash, pears, sweet potatoes, carrots, and other fruits and vegetables. In 2019, Initiative Foods earned a Small Business of the Year award from California Senator Melissa Hurtado when it recently became the largest private label baby food manufacturer in the United States. MAG Capital Partners was represented in the transaction by Mary Garnett and Jim Tuesley of Barnes & Thornburg LLP. Chelsea Mandel with Stream Capital Partners represented the seller.
MAG Capital Partners, LLC, is a commercial real estate development and investment firm formed in 2015 by Dax T.S. Mitchell and Andrew Gi. Based in Fort Worth, the company holds a portfolio of primarily industrial properties across the United States and specializes in sale leaseback transactions.