Royal Oak Announces Strategic Disposition

Apr 19, 2023
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Royal Oak is pleased to report that on March 15, 2023, we successfully closed the sale of our property in Henderson, NC, occupied by Bedding Acquisitions, LLC. We remain committed to active portfolio management and believe this disposition aligns with our strategic goals. As a reminder, the tenant occupying this facility had:

  • experienced a bankruptcy in 2019 in which Royal Oak’s leases were fully assumed post-reorganization, and
  • participated in two separate rent deferment programs during 2020 and 2021, with all rent fully repaid pursuant to the terms of those deferment programs.

Royal Oak actively owned and managed this asset for approximately 5.5 years and continued to maintain conviction in the value of the underlying real estate. As evidenced through this disposition, our investment thesis regarding the value of the real estate was validated, as Royal Oak fully recovered our original purchase price despite the volatility of the tenant’s operating performance over the past several years. Further, Royal Oak can enhance the profitability of the sale with an earnout that is achievable if certain post-closing performance conditions are met by the tenant. We plan to use the net proceeds from the sale to fund new accretive acquisitions that maximize shareholder value.