The Mandate
The Sponsor is a leading beer distributor in Florida that developed a new 15,000 SF brewery, restaurant, and event venue after outgrowing capacity at its previous location. The project cost $5.5M in 2024, financed with a high-interest bridge loan nearing maturity. Facing mounting penalties and a compressed timeline, the Sponsor engaged SAB Capital to source a sale-leaseback (SLB) capital partner who could deliver maximum proceeds while meeting critical deadlines.
The Process
SAB conducted a highly targeted private marketing process, structuring a 20-year NNN lease at healthy EBTIDAR rent coverage to ensure competitive pricing.
- Reached 52 capital groups including private investors, Public & Private REITs, and family offices
- Executed 21 NDAs within 13 days
- Granted deal room access and hosted 7 management calls with top groups
- Short-listed the top 3 bidders based on pricing, certainty of execution, and underwriting alignment
- Ultimately selected a private REIT offering the strongest economics and the fastest path to closing
Obstacles
The Sponsor had ~60 days to refinance or pay off high-leverage bridge debt with an exorbitant interest rate, increasing penalties, and a payoff exceeding $6M across:
- Senior Lender
- Multiple equipment rental companies
- Personal property lienholders
Despite strong operating performance, the Sponsor’s payment delinquencies created complexity, timing pressure, and heightened diligence from bidders.
The Outcome
SAB’s familiarity with each bidder’s underwriting process, risk tolerances, and approval workflows proved critical in navigating a high-pressure timeline.
Key value drivers:
- Advised Sponsor to preorder third-party reports from a globally recognized vendor immediately upon LOI execution, accelerating underwriting committee review
- Coordinated contract and lease negotiations to run concurrently
- Contract and lease fully executed within two weeks of underwriting approval
- Closed on 11/12/25, meeting all payoff deadlines
Results
- Sponsor realized a 30% gain within 12 months of development
- All high-interest debt and equipment liens paid off at closing
- Secured a 20-year fixed rent structure with long-term control of the facility
- Reinvested surplus proceeds into core operations and future growth opportunities
*Sponsor is kept confidential for the time being given the private nature of this transaction.
Get in touch with our advisors for more information:
Mark Pomella | mpomella@sabcap.com | 646.809.8840
Dave Gollenberg | dgollenberg@sabcap.com | 646.809.8847
Andrew Donnelly | adonnelly@sabcap.com | 646.809.8841
