Solo Cup

Property type: Industrial/R&D
Business line: Net Lease
Finance type: Strategic Investments
Location: Various

Solo Cup
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When Solo Cup sought to refinance debt taken on in a significant merger, they turned to iStar. Our net lease transaction involved six of their manufacturing facilities that represented roughly three-fourths of Solo’s EBIDTA and included their most state-of-the-art production lines. We carefully underwrote the underlying business and recognized the stability of the cash flows due to the high switching costs of their customers. In 2014, following Solo’s acquisition by Dart Container, the new owners bought us out of the lease, generating a significant round-trip return on our investment.