$16.0 MILLION

CHALLENGE

Red Dot Corporation, a specialty HVAC manufacturer, needed to unlock the equity tied up in two Memphis production buildings to fund two near-term business acquisitions and accelerate growth. The mandate came just as a tariff-driven trade war shock clouded short-term revenues, shrinking the universe of net lease investors willing to underwrite the credit. Complicating matters further, both facilities sit on President’s Island under a long-standing PILOT tax abatement structure administered by the Memphis Shelby County EDGE agency, which retains fee simple title during the abatement term. This ownership arrangement made many buyers and their lenders uncomfortable. Red Dot required a sale-leaseback solution that preserved its PILOT savings, protected 100% operational uptime, and still closed within the company’s fiscal window for reinvestment. The stakes: turn real estate equity into $16 million of liquidity without derailing production or jeopardizing the incentives that keep Memphis competitive. 

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ACTION

Landon Williams and his Capital Markets team positioned the offering as a mission-critical, 20-year absolute net sale-leaseback, then launched a tightly controlled process to proven net lease investors. Landon orchestrated virtual management briefings which allowed Red Dot’s CFO to present the company’s tariff mitigation strategy and planned acquisitions to the top buyers, giving investors confidence to underwrite the credit. After the buyer was selected, Landon negotiated directly with the buyer, Red Dot, and the Memphis Shelby County EDGE agency to craft a solution that preserved the PILOT tax savings while meeting the buyer’s investment partners and lender requirements. An accelerated diligence schedule cleared environmental, survey, and lease reviews in record time, moving the deal from signed PSA to closing in just 33 days - comfortably inside Red Dot’s fiscal window for redeploying the $16 million of unlocked capital.