Specialty outdoor retailer REI Co-op entered into a longterm sale-leaseback agreement with Madison Capital for its four, class A distribution center properties. The co-op noted that it will continue to maintain and operate all buildings with no impact to employees.
“Based on the success of long-term leases with our current headquarters and majority of our stores, we determined a sale-lease back model was a great option as part of our overall financial and real estate portfolio management,” said Kelley Hall, REI’s CFO. “Madison Capital was selected as the strongest partner after a thorough process that included interest from multiple buyers. We are enthusiastic about our partnership and their support of our commitment to sustainability.”
Madison Capital paid $230 million to REI for the buildings and land associated with distribution centers in Sumner, W.A.; Bedford, P.A.; Goodyear, A.Z.; and Lebanon, T.N.. REI will continue to own all equipment and machinery inside each facility.
REI’s network of distribution centers services over 190 stores across the country, and fulfills online orders. Three of the four distribution centers are certified as TRUE zero waste facilities, with the fourth cert. in process. Additionally, three distribution centers are LEED certified by the U.S. Green Building Council rating system.
