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First Beverage Announces Partnership with Monarch Beverage on New Facility |
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Friday, 12 September 2008 |
First Beverage announced that it has entered into an agreement with Monarch Beverage Company for the development of its new 530,000 square foot facility in Indianapolis. First Beverage will own the new facility, and Monarch and First Beverage have entered into a strategic, long-term lease, which includes an option to expand the facility by an additional 400,000 square feet. The project is estimated at $35 million, exclusive of the expansion option.
"First Beverage Capital was by far the best source of capital for the development of our new, state-of-the-art facility," said Phil Terry, CEO of Monarch Beverage. "With their beer industry knowledge and real estate development know-how, the First Beverage team was able to custom-tailor an unparalleled capital solution for Monarch Beverage's long-term growth."
"We are extremely pleased to partner with Monarch Beverage on the development of a world-class facility that will provide an efficient platform for their future growth in the State of Indiana," said Bill Anderson, CEO of First Beverage. "Phil Terry and the entire Monarch team are true leaders in the industry."
"Our transaction with Monarch Beverage has been extremely complex, requiring an absolute commitment to working in unison throughout the entire process," said Ian Marksbury, VP, Director of Acquisitions and Development for First Beverage.
"Tax Incentive Financing (TIF) allowed for a significant savings, but also required extensive negotiations with City officials. The half million square foot building has been designed for a seamless expansion, nearly doubling its size while maintaining all advantages of a single facility. In addition to the building design challenges, wetlands had to be relocated, which included negotiation with local, state and federal agencies. While complex, this transaction is an example of what can be achieved when we work closely with a focused and knowledgeable client and a highly experienced general contractor."
Monarch Beverage Company was established in 1947 and is one of the largest beer and wine distributors in the country. Their beer division serves nearly two-thirds of the State of Indiana with quality products from Miller Brewing Company, Coors Brewing Company and many of the country's best craft and import beers. Monarch's wine division represents the products from E&J Gallo and many other fine import and domestic suppliers.
First Capital was established in 2005 and is the country's number one provider of real estate capital to the beverage industry. First Beverage provides flexible, long-term capital to leading beverage operators through sale-leaseback and build-to-suit transactions. First Beverage enters into real estate transactions across the country with growing beverage distributors, bottlers and suppliers who are interested in preserving their capital for core operations and higher-returning acquisitions.
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