July 19, 2016

Albertsons Portfolio Acquisitions Case Study

Food4Less Stanton Box Photo

The Project: Heslin Holdings purchased a portfolio of four former Albertson’s buildings in Southern California. The properties were located in Stanton (80,000 s.f.), Fullerton (80,000 s.f.), Eagle Rock (32,500 s.f.), and Moreno Valley (41,000 s.f.). 

Challenges:

  • Heslin Holdings was only given a Sixty (60) day Due Diligence period to perform all of their third party reports, obtain financing and close the transaction.
  • Each building represented its own individual challenges from a re-tenanting perspective.
  • The Moreno Valley property was most challenging from a location standpoint but Heslin Holdings knew they had to purchase this asset in order to obtain the other three well located properties.

Results:

  • Heslin Holdings was able to complete all of their third party reports and obtain financing within the first 30 days.
  • The two large 80,000 s.f. buildings represented the largest challenge in trying to find a single tenant to occupy those buildings. Heslin Holdings was able to garner interest with Food 4 Less to occupy both entire buildings and went to their corporate office to expedite the LOI and Lease negotiations over a four day period. Both Leases were finalized before the Sixty (60) day Due Diligence Period was completed.
  • Heslin Holdings leased the 3,00 s.f. building to Tesco (“Fresh and Easy”).
  • Moreno Valley was the most challenging property from a location standpoint but Heslin Holdings was able to execute a lease from Fresh & Easy for 15,000 s.f. of the initial 41,000 s.f. After Fresh and Easy filed for bankruptcy, Heslin Holding’s was able to backfill their space with Dollar Tree and leased the remaining 26,000 s.f. to Smart & Final.
  • The portfolio was acquired for $33 million and was subsequently sold for over $60 million.