Matthews™ Completes Sale-Leaseback of Specialized Manufacturing Facility in the Mid-Atlantic

UNITED STATES—Matthews™, a commercial real estate investment services and technology firm, facilitated a confidential sale-leaseback involving a sponsor-backed lumber and industrial processing company operating from a specialized manufacturing facility in the Appalachian region. Matthews™ Vice President Aria Pournazarian, Senior Associate Thiago Delia, and Associates Brody Hess and Adam Rose advised on the $14.5 million transaction.

Spanning approximately 360,000-square-feet across 40-acres, the facility serves as a mission-critical component of the company’s operations. The assignment originated following a broader recapitalization of the operating company. While ownership viewed the real estate as a passive asset, Matthews™ identified an opportunity to unlock additional value through a strategic restructuring of the company’s real estate and lease economics, benefiting both the founder and the sponsor.

Despite its rural location, specialized improvements, and limited alternative-use profile, the Matthews™ agents successfully repositioned the asset for institutional capital through a long-term sale-leaseback structure. Institutional investor interest was driven by the strength of the operating business, including durable cash flows, strong margins, diversified exposure across lumber, biomass, building materials, and industrial end markets, and the mission-critical nature of the facility.

“We’re seeing a growing number of institutional investors evaluate sale-leaseback opportunities through the lens of business performance and credit quality rather than real estate fundamentals alone,” said Pournazarian. “This transaction is a prime example of how strong operating companies can unlock value from specialized facilities while attracting sophisticated long-term capital.”

The transaction created liquidity for ownership while simultaneously injecting capital into the operating company. By restructuring the lease, Matthews™ also reduced annual occupancy costs by approximately 30%, resulting in meaningful EBITDA enhancement and increased enterprise value for shareholders. This allowed the operating company to secure a lower long-term cost of capital as opposed to conventional financing alternatives, while maintaining complete operational control of the facility.

Matthews™ Corporate Advisory advises operators, founders, and financial sponsors on sale-leaseback execution, real estate monetization, and strategic capital solutions.

For more information, please contact Aria Pournazarian, Brody Hess, Thiago Delia, and Adam Rose or visit www.matthews.com.

About Matthews™

Matthews™, a commercial real estate investment services and technology firm, holds recognition as an industry leader in investment sales, leasing, and debt and structured finance. Based out of Nashville, TN, and strategically positioned with over 1,000 agents and employees in 30 offices across the United States, Matthews™ continues to focus on expansion into new markets. For more information, please visit www.matthews.com.