sale Archives - Page 2 of 4 - Central Penn Business Journal

Armstrong Flooring sells North American assets for $107 million; Lancaster location to stay open

Armstrong Flooring, Inc. announced Sunday it has sold its North American assets for $107 million in cash.

The company said a binding Asset Purchase Agreement has been signed with a consortium of buyers consisting of AHF, LLC and Gordon Brothers to acquire substantially all Armstrong Flooring Inc.’s North American assets for $107 million in cash and assumption of specified assumed liabilities.

Armstrong Flooring said AHF plans to keep the Lancaster location open.

This binding Asset Purchase Agreement was the culmination of the Company’s Chapter 11 auction process for its North American assets.

“The auctions for the sale of the company’s Chinese and Australian businesses have not yet formally concluded, but we expect to conclude them in the near term,” a company spokesperson said in a press release.

The company has received binding bids to acquire each of the Chinese business and the Australian business and will sign the definitive purchase agreements for these transactions as soon as the auctions close.

The Chinese and Australian businesses will continue to operate as usual and the operations remain unaffected by the Chapter 11 cases, the spokesperson said.

The AHF and Gordon Brothers consortium would acquire substantially all of the assets of North America. AHF plans to continue operating the Lancaster, Kankakee and Beech Creek locations, and the company would pursue an orderly winddown of its Jackson and Stillwater locations on July 15.

“Pending consummation of the sale of its North American assets, which is scheduled for July 22, Armstrong Flooring will continue to operate as usual in all North American geographies and remains committed to its customers and other stakeholders,” the spokesperson said.

The proposed transactions are the outcome of a Court-supervised auction that commenced on June 27 during which the bid from the AHF and Gordon Brothers consortium was the sole binding bid received. The proposed transactions are subject to Bankruptcy Court approval, as well as regulatory approvals and customary closing conditions.

“We have been working hard to execute an efficient and value-maximizing sale of the business while keeping the best interests of our valued stakeholders at the forefront of all that we do,” said Michel Vermette, president and CEO.

“In light of the agreement we have reached with AHF and Gordon Brothers, and the agreements we are close to signing with the buyers of the Chinese and Australian businesses following consummation of the auction, Armstrong Flooring is now one step closer to achieving that goal,” he said.

He said the company had hoped to find a buyer for the entire business and avoid any closures, however, “based on the options available to us, we believe this is the best possible path forward for our business.”

“This reflects the support of our ABL lenders, creditors and other key stakeholders, and has been approved by our Board of Directors,” Vermette said. “While we cannot speak on behalf of the proposed buyers, we are encouraged that they see the potential of the company in the markets we serve and understand the role our people play in driving the business forward.”

The proposed North American sale transaction will be heard at a U.S. Bankruptcy Court hearing currently scheduled for tomorrow and the sale transactions for the Chinese and Australian businesses also will be heard at the time provided the auction is closed in time.

The company is working alongside its DIP lenders to enable Armstrong Flooring to continue operating its business while the buyers finalize all details and close the sale.

Armstrong Flooring halts auction of its North American assets until July 5

Armstrong Flooring’s Lancaster campus consists of its corporate offices and design center. PHOTO/IOANNIS PASHAKIS

Armstrong Flooring has halted its auction of its North American assets and the company until July 5 as it seeks higher bidders.

The company filed for Chapter 11 bankruptcy in early May and has been operating on borrowed money from lenders Pathlight Capital and Bank of America, in anticipation of a sale.

“Armstrong Flooring held an auction with interested parties to acquire all or various parts of our business on June 27,” a company spokesperson said.

After multiple days of talks and negotiations with interested parties, the company identified a lead bidder in Australia and China, which, Armstrong said, exceeded the starting bids.

However, “after multiple days of talks and negotiations with interested parties, auctions for our North American assets and the entire company as a whole have been adjourned as the company works to seek higher and better bids,” the company spokesperson said.

The next hearing is scheduled for July 7 and any sale motions will require court approval, the spokesperson said. Following that, any transactions would be subject to regulatory approvals and customary closing conditions.

Armstrong Flooring had to align with the court’s availability to resume the auction, meaning the earliest the court can accommodate Armstrong Flooring is Tuesday, July 5, the company said.

Apartment building with retail space brings nearly $1.5M

134-136 South Union Street located in Middletown, Pa. The 17-unit mixed-use building sold for $1,493,500. PHOTO/PROVIDED

A 17-unit mixed-use building in Middletown has sold for $1.493 million, according to Marcus & Millichap, the commercial real estate brokerage firm that handled the transaction.

The listing, at 134-136 S. Union St., was acquired by One Tower Properties LLC. The seller was Steve Kancahian.

On 0.28 acres, it includes a studio apartment, three one-bedroom/one-bathroom units, 10 two-bedroom/one-bathroom units, two three-bedroom/one-bathroom units and a retail space.

“Despite the rise in interest rates, our team has noticed that the overall demand within the apartments sector has been steadily increasing throughout the first couple quarters of 2022,” Jeremy P. Ryan, a multifamily investment sales specialist with Marcus & Millichap’s Philadelphia office, said in a release.

“The various value-add components, paired with a strong tenant mix and prime location in downtown Middletown, caught the attention of numerous multifamily investors seeking inventory in a market that’s lacking supply today. For this transaction, we were able to create a competitive bidding environment and ultimately select an all-cash buyer to get this deal across the finish line.”

Paula Wolf is a freelance writer

Sycamore Run in Jacobus sells for $3.9 million

Sycamore Run in Jacobus, York County – PHOTO/PROVIDED

Sycamore Run, a 16-unit multi-family community in Jacobus has sold for $3.9 million.

Scope Commercial Real Estate Services LLC, a middle-market multifamily investment sales firm which sold the property, said the price equates to $243,750 per unit.

Sycamore Run, 17 S Main Street in Jacobus, is comprised of two and three-bedroom layouts ranging in size from 910 to 1,265 square feet.

The modern, new construction community features private entrances, open concept living, modern appliances, porches or balconies and parking.

Fahd Malik, director at SCOPE, had the exclusive listing to market the property on behalf of the seller, a York-based developer, and procured the buyer, a New Jersey-based limited-liability company.

At the time of the sale, the transaction represented a 5.50% capitalization rate with room for additional rental upside.

“The lack of supply in a high-demand rental market drew attention from several investors and presented a great opportunity to capitalize on the growing Central Pennsylvania market,” Malik said. “York County is continuing to see record-setting rent growth due to affordability and proximity to employment driving demand.”

Former Fusion Fire Asian restaurant sold

The former Fusion Fire Asian restaurant, 3421 Simpson Ferry Road, Camp Hill, has been sold to Double Tree Realty LLC.

The former owners, Frank and Vivian Dominick, operated the Asian Fusion restaurant in the Camp Hill area since August 2011, said NAI CIR, whose agents Amber Corbo and Nic Sgagias handled the transaction.

The buyers plan to maintain the Asian restaurant concept for this 6,370-square-foot location, they said.

West Manchester Town Center sold for $42.5M

JLL Capital Markets announced this week that it closed the sale of West Manchester Town Center, a 488,037-square-foot retail complex in York County.

A Paramount Realty Joint Venture purchased the property for $42.5 million, BizNewsPA reported. JLL represented the seller, ATR Corinth Partners.

“We at ATR Corinth are excited about the redevelopment of West Manchester Town Center into a dynamic retail center that will serve the community for decades,” Partner Tony Ruggeri said in a release. “As with any project of this size, we would like to thank the officials at West Manchester Township, the Redevelopment Authority of York County and the residents of the township and county for their support in this transformation.” Based in Lakewood, New Jersey, Paramount Realty owns and operates a portfolio of more than 15 million square feet throughout the Northeast, including other retail centers in central Pennsylvania.

On 94.1 acres, West Manchester Town Center is at 415 Town Center Drive and features such national retailers as Kohl’s, At Home, HomeGoods, Hobby Lobby and Burlington.

The release noted that the property drew more than 4.2 million customer visits over the last year, the second most visits to an open-air shopping center within a 15-mile radius.

“We have seen renewed demand for best-in-class power centers over the last 24 months, which speaks to the positive macro performance of big box retailers as we exited the pandemic,” added JLL Senior Director Chris Behr.

“With an extremely competitive bid process, West Manchester is a perfect example of this ongoing trend.”

Paula Wolf is a freelance writer.

Armstrong Flooring files for bankruptcy

Armstrong Flooring’s Lancaster campus consists of its corporate offices and design center. The company employs 420 people in Lancaster County. PHOTO/IOANNIS PASHAKIS

Armstrong Flooring has filed for Chapter 11 bankruptcy as it continues to search for a buyer.

The Lancaster-based flooring designer and manufacturer announced the decision on Monday as it reached a deadline with lenders to either sell or refinance the company to repay outstanding loans.

Armstrong Flooring noted that it was weighing the option of bankruptcy protection in a report with the United States Securities and Exchange Commission (SEC) last week after receiving a week-long extension to its deadline.

The company retained Los Angeles-based investment banking firm, Houlihan Lokey Capital, late last year to help with the sale of the company and the consideration of other strategic options, but had failed to finalize a purchase or merger agreement by its May 8 deadline.

Armstrong Flooring said in a statement on Monday that it will continue to seek a sale of the company during the bankruptcy process.

“Armstrong Flooring filed for voluntary Chapter 11 protection in order to execute an efficient and value-maximizing sale of the business,” said an Armstrong Flooring spokesperson. “Armstrong Flooring is open for business and remains firmly committed to our customers, vendors and employees as we navigate the path forward.”

The flooring manufacturer reported a loss of $53 million in 2021, adding to the company’s accumulated deficit of $356.2 million. The company’s stock price was at $.29 at the close of trading on Friday, prior to the announcement of the bankruptcy, a drop from $1.64 on April 29.

Michel Vermette, president and CEO at Armstrong Flooring, attributed the losses to a number of “macroeconomic trends,” including supply chain challenges, the current inflationary environment, and continued headwinds from the pandemic.

“With the support of our board of directors, we have determined that using the Chapter 11 process to effectuate a potential sale is the right next step for our company,” said Vermette. “As we have said previously, we firmly believe in the value and potential of Armstrong Flooring—and we are confident that this definitive action puts us in the best possible position to preserve and maximize value for our stakeholders.”

The credit agreement, if approved by bankruptcy court, would provide for $30 million of debtor-in-possession financing, providing Armstrong Flooring with the liquidity to operate and cover administrative expenses as it pursues a sale.

The company’s businesses in China and Australia will not be included in the Chapter 11 filing, but are part of the sale process. Armstrong Flooring employs 1680 people with 340 people in China, 110 in Australia and 420 in Lancaster County.

Lancaster industrial property sells for $23.9 million

A newly-built industrial building at 701 Stony Battery Road, Lancaster. PHOTO/PROVIDED

A newly-built industrial building at 701 Stony Battery Road, Lancaster has been purchased for $23.9 million, according to documents filed with the Lancaster County Recorder of Deeds.

The 251,250-square-foot industrial building was purchased from Catalyst Commercial Development, which oversaw the entitlement process and constructed the asset. Lee & Associates of Eastern Pennsylvania (LAEP) orchestrated the sale and did not disclose the buyer of the property.

The facility features 36-foot clear ceiling heights, 49 loading docks and ample parking capacity, according to LAEP.

“The building’s exceptional location combined with best-in-class design and the limited amount of Class A product in the Route 283 Corridor attracted the buyer to the opportunity,” said Robert Yoshimura, a principal at LAEP. “Additionally, the site’s infill location was desirable due to the rapid growth of the Lancaster submarket, forecasted population growth, and a robust logistics infrastructure network.”

East Hempfield Township approved the facility along with 791 Stony Battery Road in March 2021. 701 finished construction in mid March and LAEP closed the sale on April 25.

The new owner of the facility has already leased the space out, according to Connor Sanbower, an associate at LAEP.

“It was a smooth transition,” said Sanbower. “With market conditions as they are, it was a rewarding investment for this firm to go for.”

ENB Financial reports decline in net income, increase in assets

ENB Financial Corp., the bank holding company for Ephrata National Bank, reported net income of $3.191 million for the first quarter, down 29.2% from a year ago.

Higher net interest income and a lower provision for loan losses were more than offset by lower operating income and higher operating expenses, a release explained.

National Bank operates 13 locations in Lancaster County, southeastern Lebanon County and southern Berks County.

For the three months ending March 31, ENB Financial’s net interest income increased 10.8% compared with the same period in 2021. And interest expense on deposits and borrowings decreased 19.7%.

The corporation recorded a provision for loan losses of $100,000 in the first quarter of 2022, compared with $375,000 for the first quarter of 2021.

Other quarterly income fell $1.642 million, or 30.9%, compared with the prior year, primarily due to a 61.9% decline in gains on the sale of mortgages. “Mortgage production was stable in 2022 compared to 2021, but the rapid market rate increases have affected the margin the corporation is able to obtain on the sale of mortgages,” the release noted.

Also, total operating expenses increased $1.421 million, or 15.5%, as salary and benefit expenses jumped 14.3%.

As of March 31, ENB Financial reported assets of $1.71 billion, up 11.3% from a year ago; loans of $950.6 million, up 12.9%; deposits of $1.52 billion, up 14.5%; and stockholders’ equity of $116 million, down 9.9%.

Rosenmiller building sold to international buyer

Rosenmiller building, 33-41 W. Market St., York PHOTO/PROVIDED

The Rosenmiller building in York has been sold to an undisclosed international buyer.

Justin Verner, president, and Brooks Healy, senior advisor, of Harbor Stone Advisors, represented both the buyer and seller of the building, located at 33-41 W. Market St., York. This is the buyers first Pennsylvania acquisition, they said.

The Rosenmiller building features 16 one-bedroom, one-bath apartments, one duplex, and four commercial spaces.

Property amenities include a laundry room, free Wi-Fi for tenants, and 12 surface parking spaces.

The commercial spaces are leased to an all-day breakfast and lunch restaurant, a soft pretzel bakery, and a children’s party venue/toy store.

Previous owners renovated the property in 2010 which included converting the 2nd-4th floors from office space to apartments, Harbor Stone Advisors said in a press release.

The apartment units feature stainless steel/black appliances, wood cabinets, Formica countertops, ceramic tile in bathrooms, and refinished hardwood/bamboo wood flooring.

“Tertiary markets have seen a significant wave of multifamily deal activity in the current cycle,
Verner said. “We were able to source an international buyer for this asset, who was seeking more yield than is generally available in larger, East coast metro areas.”

Haines Acres Shopping Center under new ownership

Haines Acres Shopping Center on Haines Road in York is under new ownership. PHOTO/PROVIDED

Haines Acres Shopping Center, York, has been sold and will undergo renovations.

J.C. BAR Properties, Inc. Senior Commercial Advisor Broker Frank Messina recently sold the shopping center on Haines Road, just off I-83 to an undisclosed buyer.

The center is anchored by Ollie’s Bargain Market. Other tenants include Dollar Tree, Sherwin-Williams, J&J Nails Spa, Big Apple Bagel, Parma Pizza, Uller’s Outdoor and Steinmetz Coins & Currency.

“Large number of residents, strong traffic count, and proximity to I-83 makes this shopping center a key location in York County. I am excited to be part of this project as we start the marketing process this spring,” Messina said.

Development plans for the shopping center include facade renovations, signage upgrades and a possible pad site on the parking lot, he said.

Major road improvements have been completed, allowing additional traffic access to the shopping center, Messina said. Haines Acres Shopping Center has tremendous visibility and traffic counts with approximately 14,666 vehicles per day on Haines Road.

Messina will be handling the leasing for the shopping center and redevelopment.

Montgomery County retail center sells for $161 million

A Bethesda-based real estate firm and its partner have bought a 760,000-square-foot retail center in the Greater Philadelphia region for $161.75 million, the companies announced Friday.

Finmarc Management, Inc. partnered with New York-based investment and operating firm KPR Centers on the acquisition.

Providence Town Center, which is in Collegeville, a town northwest of Philadelphia, first opened in 2009 and features 11 anchor tenants, led by a Wegmans Food Markets. The center has 70 tenants, including retail, dining, medical and more. The center is on 82 acres of land at 100 Town Center.

“The new ownership team has plans for improvements to the center to drive a higher velocity of customer traffic to the already busy Town Center,” Finmarc Principal and Co-Founder David Fink said in a news release. “This strategy and preliminary activity have already garnered interest from additional national and regional tenants looking to establish a presence at Providence Town Center.”

The shopping center is well-positioned for future success, the companies said, with the surrounding communities having a growing population of just under 125,000. Nearby residential communities have expanded by more than 42% in the past two decades, and a 700-unit apartment project is planned.

The shopping center is also adjacent to Route 422, which almost 65,000 vehicles travel daily, and Route 29, which about 20,000 vehicles travel daily.

“Providence Town Center in an institutional-quality regional shopping center and, with more than a dozen high-performing anchor tenants including Wegmans Food Markets, is among the dominant retail venues in the greater Philadelphia trade area,” Fink said. “The surrounding demographics led by an ever-growing residential population, together with the presence of major employers and employment centers, provide us with tremendous confidence about the asset’s long-term performance.”

This follows another Philadelphia-area transition by the two companies; late last year, Finmarc and KPR sold Red Lion Plaza, a shopping center at 9950 Roosevelt Boulevard in Philadelphia for $56.45 million that had been owned by a joint venture of the two companies since 2013. The identity of the buyers was not disclosed.

The firm has also recently broken into the North Carolina market through the $58 million acquisition of a 383,000-square-foot retail center in Raleigh.

Select Region or Brand

Upcoming Event

Tag: sale