Suntrust Equity Funding, LLC, a subsidiary of Truist Financial Corporation purchased the three facilities and will lease them back to Havertys through a 15-year operating lease agreement with four renewal options of five years each.
The facility in Coppell, TX has approximately 394,000 distribution square feet used to serve Havertys western stores, 44,000 retail square feet and 20,000 square feet of office space. The Lakeland, FL property is a distribution center with approximately 335,000 square feet and the Colonial Heights, VA location is a distribution center with 129,000 square feet.
The total annual rent for all three properties will start at $4,470,705 and will increase by two percent per year.
Havertys is a full-service home furnishings retailer established in 1885. The company has 121 showrooms in 16 states in the South and the Midwest.
The company had what it described as “a very difficult year” in 2019, with sales of $802.3 million, down 1.9% from 2018. Havertys has been reopening stores in early May after closing them due to Covid-19 in mid-March.
At the end of April, the company cut the jobs of more than one-third of its workforce and extended the furlough of approximately 730 additional workers.
“The unknown duration for reaching a return to ‘normal’ requires taking proactive, aggressive actions to sufficiently scale our operations to enable Havertys to endure and recover when conditions improve,” Havertys President and CEO Clarence H. Smith said in a statement. “This week, with a heavy heart, we will begin the first step towards our new ‘normal’ with the reopening of our stores and renewed commitment to providing Havertys’ renowned excellent customer service.”
Due to disruptions of production in China and Vietnam, the furniture industry experienced an early impact of the pandemic.