Sunday, October 14, 2007

Universal Technical Institute Completes $33 Million Sale Leaseback of Campus in Norwood, MA

Commercial Property News - October 12, 2007

Taking advantage of favorable market conditions, Universal Technical Institute Inc. completed a sale leaseback transaction on its Norwood, Mass., campus. The building and land were sold for $33 million to an undisclosed buyer.

The transaction resulted in an almost $500,000 gain that will be amortized over the lease term. Concurrent with the sale transaction, UTI entered into a long term lease with the purchaser for an initial term of 15 years with the option to extend for up to an additional 20 years. The transaction will enhance the company's cash position. UTI cut its staff and restructured sales functions recently, too. With this sale, all 10 UTI campuses are now being leased.

Located in the suburbs of Boston, the UTI Norwood campus benefits from the expansion of commercial real estate in the Boston area. Sphere: Related Content

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