Sovereign Investment Company, one of the largest and fastest growing private equity investors providing sale/leaseback capital, today announced it has completed a $16.5M sale/leaseback transaction on seven properties operated by Canyon State Oil Company, Inc., located in Phoenix, Tucson, El Paso, North Las Vegas, Denver, and Albuquerque. The properties are leased for 12 years, with four five-year options, and include annual rent increases of 2% beginning in year six of the lease.
Canyon State Oil Company is a leading supplier of quality oils and fuels to manufacturing, aerospace, and machine shop industries, and serves customers throughout Arizona, Nevada, New Mexico and West Texas. Canyon State Oil Company is headquartered in Phoenix, Arizona, and is now one of the operating companies of SPI Petroleum, LLC, a national marketer of petroleum products and related services to commercial and industrial industries.
"Sovereign's expertise enabled us to structure a flexible transaction which helped to facilitate our deal with SPI Petroleum, LLC," said Tom Arndt, president of Canyon State Oil Company. "Sovereign was committed to providing innovative capital solutions that enabled our company to achieve business goals."
"We are delighted to have been selected as Canyon State Oil Company's sale/leaseback provider for this important transaction," said Jeff Hoppen, chief investment officer of Sovereign Investment Company. "This transaction is another example of Sovereign's ability to provide financing to strong regional operators to help them grow and meet their business objectives."
About Sovereign Investment Company
Sovereign Investment Company is one of the largest and fastest growing private equity investors providing sale/leaseback capital to owners, operators and developers of single-tenant, net-leased real estate. Well-capitalized and positioned for growth, Sovereign is actively pursuing restaurant, retail, office and industrial investment opportunities. Since 2004, Sovereign has invested more than $400 million in long-term, net-leased properties nationwide.
