A joint venture comprised of Heritage Capital Group LLC, Barrow Street Capital LLC and Greenfield Partners LLC has acquired three distribution centers from KB Toys for $77.5 million.
Totaling 2.2 million square feet, the properties are located in Clinton, N.J. (730,000 square feet); Glendale, Ariz. (620,000 square feet); and Montgomery, Ala. (840,000 square feet). KB Toys has leased back the entire portfolio for six months. Thereafter, KB will remain in 480,000 square feet at the New Jersey building and 375,000 square feet at the Arizona property. The Alabama property will be vacated.
Tom Consiglio of Resource Realty, the brokerage that represented KB Toys, said in a statement: “KB Toys recognized that it had overcapacity in their distribution network and tremendous value in its real estate. We studied many alternatives to unlock that value, and the sale with a partial sale lease-back gives KB the opportunity to capture that value while creating operating efficiencies.”