Real estate private equity firm Pennybacker Capital Management, LLC and M2G Ventures, a North Texas-based real estate investment and development company, have purchased more than 1.2 million square feet of industrial and office space from Dallas retailer Tuesday Morning in a sale and leaseback transaction.
The acquisition includes five of Tuesday Morning’s industrial distribution centers located along Inwood Road in Addison and Farmers Branch, totaling 1.1 million square feet, and its 105,000-square-foot corporate headquarters office at 6250 Lyndon B. Johnson Freeway in Dallas.
As part of the agreement, Tuesday Morning will lease back the industrial properties for two-and-a-half years and the corporate headquarters building for 10 years. M2G Ventures will assist with operating the portfolio.
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“Tuesday Morning filed for bankruptcy last year, and our team was able to provide liquidity for a distressed retailer in a strategic growth market for us,” said Tim Berry, CEO of Pennybacker. “Going forward, we want to participate in similar transactions with companies entering into sale-leasebacks as a source for raising capital, paying down debt, and strengthening their balance sheets.”
“We are pleased to partner with Pennybacker to unlock value for Tuesday Morning, while significantly growing our urban industrial portfolio. This transaction is an important milestone in M2G’s history, for Tuesday Morning, and the industrial market, collectively,” said Jessica Miller Essl, Co-founder of M2G Ventures.