As part of a larger deal in which Big Lots is selling off numerous properties to Blue Owl Capital, the company’s Apple Valley distribution center has recently traded for $219 million.
According to Vizzda records, Big Lots paid $101 million, or $75 per square foot, for the more than 1.34 million square foot distribution center on Aug. 29. Following the acquisition, the firm broke their existing lease from March 23 and then re-sold the property to Blue Owl Capital for $219 million, or about $163 per square foot. At this time, Big Lots re-established a 35-year lease at the distribution center. The current lease is set to run through August 2043, with two five-year extension options and one four-year extension.
Located at 18880 Navajo Road, the distribution center was built in 2018 and sits on more than 106 acres of land. The property also has 102 dock doors. The property sits in a major industrial hub within the Inland Empire, with nearby industrial facilities occupied by companies like Walmart, Fresenius Medical Care and others. The Apple Valley Airport is also situated just south of the site and Interstate 15 is located to the northwest.
In July, Big Lots announced that it had entered into a sale and leaseback agreement with affiliates of Blue Owl Capital for the distribution center along with 26 store locations. Gross proceeds from the transaction are expected to be approximately $318 million, according to the announcement.
“As we discussed on our Q1 earnings call, we are highly focused on ensuring we have plenty of liquidity to get through this period of macroeconomic challenges, and monetizing these assets is a significant step forward in ensuring such liquidity. Blue Owl has been a good partner on our other regional distribution centers, which we sold and leased back in 2020, and we look forward to furthering our relationship through this transaction,” Bruce Thorn, president and CEO of Big Lots said at the time of the announcement.
Based in Columbus, Ohio, Big Lots operates more than 1,420 discount stores across 48 states. The retailer was founded in 1967 and carries a mix of items, including kitchenware, seasonal decor, furniture, groceries and more.
Founded in 2021, Blue Owl Capital is an asset manager with approximately $150 million in assets under management and 10 offices located across the globe.
