PHOENIX, AZ – Fundamental Income, a Phoenix-based net real estate lease platform, has acquired a 75-acre facility in Tolleson, AZ from e-commerce platform Carvana in a $ 50 million transaction.
The acquisition marks Fundamental Income's first deal on its $ 500 million net rental platform, supported by Brookfield Asset Management. The company received its first equity commitment in April from a fund managed by Brookfield Asset Management.
Carvana will lease the vehicle inspection center back from Fundamental Income and continue to operate the property as a refurbishment and photo facility for vehicles sold on Carvana.com.
As a key part of Carvana's nationwide distribution network for buying and selling used vehicles, the property serves as one of the company's nine inspection centers in the United States.
"This acquisition creates a long-term partnership and provides capital for an innovative company that is growing rapidly," said Alexi Panagiotakopoulos, Chief Investment Officer of Fundamental Income. "Our primary goal is to provide critical growth capital to businesses that serve US consumers, and this transaction does just that."
Fundamental income will continue to focus on sale leasebacks. Investment in single-tenant properties that were let net to operating companies in the USA.
"Sale-lease-back transactions continue to be an important part of our capital strategy as we expand our footprint in inspecting and overhauling infrastructure," said Michael McKeever, Vice President of Capital Markets at Carvana. “These centers play an important role in growing our business and continuing to deliver high quality vehicles to our customers. We are pleased to be part of this transaction with Fundamental and look forward to further cooperation opportunities. "