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DWG Capital Partners buys distribution center near Spartanburg

Contributing Writer //January 30, 2023//

DWG Capital Partners buys distribution center near Spartanburg

Contributing Writer //January 30, 2023//

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Lancaster Distributing Co. will continue to lease the Pauline property recently purchased by DWG Capital Partners. (Photo/Provided)DWG Capital Partners Inc., a commercial real estate investment firm, acquired a single-tenant industrial property near Spartanburg in a sale-leaseback transaction.

The 72,705-square-foot property in Pauline is on 18.6 acres.

Built in 1984, the building serves as distribution center for Lancaster Distributing Co., the largest paint sundries supplier in the Americas.

Lancaster will continue to occupy the property on a long-term triple net lease, according to a news release.

Andrew Sandquist and Tyrell McGee with Newmark represented the seller in the transaction.

Judd Dunning, president of DWG Capital Partners, secured fixed-rate acquisition financing via Simon Miller of Endaxi Capital Partners, locking in a favorable interest rate ahead of last year’s increase in lending rates.

“This acquisition continues the strategic expansion of DWG’s portfolio of net-leased industrial assets with a preemptive deal that enabled us to save significantly in our final mortgage rate pricing,” Dunning said in the news release. “We continue to evaluate new opportunities to acquire well tenanted properties. Lancaster is an American success story.” 

Lancaster was founded in 1953 by George Lancaster, who stocked paint brushes in a spare bedroom of his home and would hand deliver or ship them via the U.S. Postal Service.

Today, the company employs more than 200 workers across six distribution centers in the United States and one Canada, and is a distributor in South America and the Caribbean.

The real estate firm said the facility’s strategic interstate location, at 2701 Highway 56 in Pauline, within the Greenville-Spartanburg metropolitan area, between Atlanta and Charlotte, makes it highly accessible and ideal for businesses to efficiently reach their suppliers and markets.

“DWG Capital Partners is constantly evaluating deals across the U.S. to assist owner-operators seeking to be further capitalized for further expansion,” Dunning said in the release. "As institutional buyers slow down, we believe that the M&A-driven industrial sector will continue to benefit from sale leasebacks, which provide off-balance-sheet operating capital to fund future growth, and we are here to serve those needs.” 

By Ashlie Puma