PRESS RELEASES

June 7, 2016 - Capri EGM

Capri EGM Provides Sale Leaseback Financing for Hagerty through Corporate Headquarters Acquisition

Class A institutional quality corporate headquarters subject to long-term net lease with Hagerty

CHICAGO IL, /PRNewswire/ — Capri EGM, an investment company specializing in corporate sale leaseback and build-to-suit financing, and the acquisition of institutional quality single-tenant office, industrial, and retail net lease properties, announced today that it has provided sale leaseback financing and acquired the corporate headquarters offices of Hagerty, the world’s leading insurance provider for classic vehicles and boats and host to the largest network of classic car owners. The properties were acquired by Capri EGM through a sale leaseback with Hagerty under a long-term absolute net lease. The purchase price for the properties was not disclosed.

The Hagerty corporate headquarters offices are located in Traverse City, Michigan, in close proximity to the Lake Michigan beachfront, and are comprised of four Class A office buildings and one state-of-the-art data center.

Significant Facts

  • Industry-leading insurance provider: Hagerty is the global leading insurance provider for classic cars, vintage boats and other collectables. Operating in all 50 states as well as Canada and the United Kingdom, Hagerty serves as a managing general agent partnering with best-in-class underwriters. All companies have financial ratings of A (Excellent) or better.
  • Well-maintained state-of-the-art facilities: The properties comprising the Hagerty corporate headquarters offices include four Class A office and one institutional quality data center property. The state-of-the-art facilities represent the type of best-in-class design that corporations are seeking to help them attract and retain talent.
  • Long-term net leases with built-in rent growth: The long-term absolute net lease with Hagerty includes contractual annual increases. Hagerty was founded and has been headquartered in Traverse City, Michigan for over 30 years and conducts their global operations from this headquarters facility.

Investment Management Company Comments
Shelby E. L. Pruett, Capri EGM’s Co-Chairman and Chief Executive Officer, commented: “This transaction with Hagerty illustrates how Capri EGM’s ability to provide sale leaseback financing and structure complex transactions makes us an attractive alternative source of long-term capital for creditworthy growing companies. By unlocking value through creative structuring and capital efficiency, we are committed to building long-term value for our institutional and corporate partners. The acquisition and long-term sale-leaseback afford Capri EGM the opportunity to invest in assets that are consistent with our established strategy, providing durable cash flows, escalating annual rents, and attractive risk-adjusted returns over time and across a variety of market conditions and economic cycles. Coupled with the long-term leases and the financial strength of Hagerty, we believe that this acquisition and sale-leaseback will be an accretive and a solid addition to the Capri EGM portfolio.” 

Hagerty Comments
McKeel Hagerty, CEO, stated, “We are committed to the economic development of a vibrant downtown and regional gateway to business growth in northern Michigan. With over 750 employees world-wide, more than 600 of which work in our Traverse City headquarters, we look forward to additional growth in our home town. The sale leaseback does not affect Hagerty’s ownership and we are proud to continue as a privately held business.”

Capri EGM
Capri EGM is a real estate investment manager focused on the net lease, sale-leaseback, and build-to-suit commercial markets, providing investment programs for institutional investors and capital solutions for corporations. A venture with Capri Investment Group, Capri EGM is headquartered in Chicago, Illinois.  Since 1992, Capri and its predecessor organizations have acquired, originated, and managed over $10 billion in commercial real estate investments directly and through entity level investments. Diversified assets managed on behalf of Capri’s pension fund and other institutional investors totaled approximately $3.53 billion as of December 31, 2015. Please visit capri-egm.com for more information about Capri EGM.

This press release contains forward-looking statements within the meaning of the Federal securities laws. The comments of Mr. Pruett and statements regarding the acquisition of the Hagerty Corporate Headquarters, the characteristics of the five properties or the sale-leaseback financing are examples of forward looking statements. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any security relating to Capri EGM or any of its entities’ funds or investment vehicles. Any offer or solicitation may be made only through the delivery of a definitive Private Offering Memorandum and all information contained herein is qualified in its entirety by such Memorandum.

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Trish Hoffman

thoffman@capri.global