Oak Street funds $90 million manufacturing plant in Tennessee
Oak Street Real Estate Capital agreed to finance construction and then purchase a $90 million manufacturing plant well east of Nashville. Avison YoungCapital Markets Group brokered the bespoke sale-leaseback agreement.
The 965,000 square foot facility is in Baxter, Tennessee and will be used by Portobello Americaa business unit of Brazil Portobello Groupas a ceramic tile manufacturing plant, warehouse, US headquarters and showroom.
Portobello had chosen Avison Young principals Timothy Hall, James Hanson and Tom Viscount to raise the capital needed to build the facility.
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Portobello America purchased the land and sought capital for construction of the manufacturing facility, which began late last year.
Oak Street purchased the property and is financing the construction of the new facility. Portobello will run a 20-year lease when construction is complete, which is expected in late 2022.
Portobello Group is the largest tile manufacturer and distributor in Brazil. He estimates the Tennessee facility will create more than 200 local jobs and generate about $150 million in annual revenue once full capacity is reached, which is expected to happen by 2026.
The 92-acre site is located off I-40, approximately 70 miles east of Nashville and within the Cookeville Micropolitan Statistical Area. It is in Putnam County, which is said to be a national center for ceramic tile manufacturing due to the area’s significant natural clay and feldspar reserves.
The mecca of tiles
Portobello was an attractive sale-leaseback candidate, in part because the company “is a dominant player in the global and U.S. tile industry, so investors enjoy their sale-leaseback credit,” Hanson said. commercial real estate director. Additionally, the facility will be state of the art, with the latest in tile manufacturing and durability.
He added, “Tennessee is an extremely attractive state for new business development and job creation, so the industrial market there is very attractive to investors.”