Four-Building Campus in Michigan, Setting Y-T-D Record for Largest Sale-Leaseback in U.S.
Months-Long Pursuit of Buyer for Venerable Insurer’s State-of-the-Art Corporate Campus in Grand Rapids Ends on High Note for Colliers International’s Capital Markets Team based in Southern California
In a transaction characterized as the largest of its type in the United States this year, LCN Capital Partners has acquired the bucolic and state-of-the-art Farmers Insurance Corporate Campus in Grand Rapids, Michigan as part a sale-leaseback agreement assembled by a team from Colliers International’s Capital Markets group in Southern California. The transaction will extend the venerable, nearly century-old and Los Angeles-headquartered insurer’s presence in the Wolverine State for at least 15 years.
Total value of the potentially history making contract, which included the sale of three institutionally maintained office buildings and one production and distribution facility on more than 190 acres, likely exceeded $150 million, according to a variety of outside sources. Although Colliers would not confirm the price, the company did say in a statement that it was among the largest real estate transactions in Michigan history and is, by far, the largest office transaction ever recorded in the municipality of Grand Rapids.
Led by Executive Managing Director Robert Stamm, the team of Capital Markets brokers representing the insurer included Managing Directors Andres Roldan and Steven Ward, all three of whom are based in the firm’s Orange County office in Irvine, California. Local market support was provided by Colliers International brokers David Rapp and Michael Visser of the firm’s Grand Rapids office.
“The level of domestic and offshore interest and the highly competitive sales process of this asset is indicative of the global appetite for stable, long-term and net-leased opportunities backed by financially strong tenants such as Farmers,” said Stamm. “Fundamentals remain favorable in the capital financial markets for companies looking to strategically modify their use of real estate and unlock the embedded value that can be invested in other facets of their business.”
Fully occupied by some 3,000 employees of Farmers Insurance Exchange, a wholly owned subsidiary, Farmers now has in place a 15-year absolute net lease agreement. The various buildings comprising the campus were constructed as build-to-suit structures for the insurer in multiple phases from 1990 to 2010.
“We are gratified by the central role Farmers Insurance allowed us to play in what was a significant decision to unbolt and redeploy the value of this important, Midwest corporate campus,” added Roldan. “In a one-size-fits-all world, our team stands out for just the opposite. You’ll never see us engage in any pitch and blast efforts. Each client is different and each response we provide fits their mold.”
-- END --
About Colliers International
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers and LinkedIn.