Hackman Capital Partners of Los Angeles (Michael Hackman, founder and CEO) paid $62.5 million ($20 PSF) on a bulk sale of 140 Hostess Brands, Inc. properties. The properties were spread out in 34 States, two in Arizona, one in Tucson and one in Phoenix. The sale was done by auction for the three-million-square-feet of mainly industrial real estate.
This article has been archived, please login for access or subscribe now by going to the subscribe tab at the top of page.
[mepr-show rules="58038"]The property at 3045 N Stone Avenue in Tucson and 3426 W Adams Street in Phoenix, both Hostess thrift shop outlets, were included in the bulk sale. Hackman also purchased the Hostess trucks and other assets that were at the properties for a separate amount.
“The Hostess bankruptcy translated into a rare opportunity to acquire significant real estate and equipment at one auction,” says Hackman. The auction took place August 16 in New York City, where Hackman affiliate Hackman Capital Acquisition Co. LLC served as stalking-horse bidder.
In July, Hostess Brands won bankruptcy court approval to unload the remainder of its assets at auction. Hackman Capital began negotiating with the estate to purchase the real estate and equipment. Although Hostess originally intended to sell the assets off individually or in small batches, Hackman—one of nearly 400 bidders that threw their hats into the ring in May and June—offered to buy them in bulk.
“As one of the largest wholesale bakers and distributors in the United States, Hostess Brands’ properties were strategically located with great visibility and recognition within their respective communities,” Hackman says. He notes that many of these assets, including warehouses, factories and retail stores, are located “in strong markets and on major regional distribution routes. This visibility and recognition has manifested itself in heightened interest and demand for the properties.”
The Twinkie brand that Hostess was best known for is currently owned by private equity firms Apollo Global Management and Metropoulos & Co. Twinkie production in the United States resumed after an absence on American store shelves, and became available again nationwide on July 15, 2013.
Hackman Capital was founded in 1986 and is a privately held, asset-based investment firm that focuses on the acquisition of industrial real estate and the purchase and sale of industrial equipment. The firm owned prior to this acquisition, through its affiliated entities, more than 130 facilities throughout the United States, totaling approximately 21 million square feet and over 20,000 acres of developable land.
Hackman plans to liquidate all the properties and other assets.
The Hilco Global Real Estate Team, headquartered in Northbrook, Illinois handled the transaction, marketing property and providing a broker opinion of value for each of the properties. Hilco is a privately-held, and helps companies and their professional advisors assess asset value, maximize value for said assets through asset monetization solutions, and enhance value through advisory and consulting solutions.
Hackman can be contacted at (310) 473-8900. Hilco Global Real Estate can be reached at (855) 755-2300.[/mepr-show]
[ismember]Sale date was 9/3/2013. Property in Tucson at 3045 N Stone Ave sold for $75,000, less than .001% of portfolio, a sale price that was based on broker opinion of value. We were unable to determine the sale price for the Phoenix property.[/ismember]