The Deal Story - Heritage Wholesalers-SRS Distribution (Plymouth, MA)

In the first quarter of 2022, I had the opportunity to acquire the Heritage Wholesalers facility located in Plymouth, MA. Heritage Wholesalers is a wholly-owned subsidiary of SRS Distribution. 

Based in Massachusetts, the seller constructed this building in 2008 for his own business. He eventually sold the business in 2010 and retained the underlying real estate.  

The site in Plymouth was especially attractive to us for multiple reasons. The distribution facility is adjacent to a major shopping plaza with tenants including Home Depot, Kohl’s, and PetSmart, among others. Additionally, the site provides Heritage Wholesalers with easy access to Pilgrims Highway - a major thoroughfare between Cape Cod and Boston. 

The seller was interested in working directly with a principal buyer that had the ability to move swiftly towards a close. With this in mind, I worked quickly to underwrite the asset and submit an LOI. After a brief negotiation period, the tenant waived their right of first refusal, and we went under contract to acquire the asset. 

During our due diligence period, we were made aware of the fact that the property’s parking lot was in noncompliance with the zoning requirements. Despite this and some additional maintenance items that needed to be addressed, we were able to resolve all outstanding issues with the property and were able to close this deal within two months of executing a contract. 

This transaction achieved the objectives of both the seller and the purchaser. We are excited to add another SRS Distribution center to our portfolio, and we look forward to continuing to purchase SRS-leased assets throughout the country.