Building materials distributor BlueLinx has announced the sale of its distribution center in Newark, Calif., in a Sept. 20 filing with the Securities and Exchange Commission (SEC). The 235,000-sq.-ft. warehouse sold for approximately $17.7 million.
The Atlanta-based company expects to record a gain of approximately $9.1 million related to this transaction in the third quarter of 2012 as a reduction of operating expense. Approximately $12.84 million of the net proceeds will be used for immediate prepayment of the indebtedness under its mortgage agreement without incurring a prepayment premium. About $2.76 million of the net proceeds will be used for general corporate purposes.
The SEC filing did not disclose the name of the buyer.
In a press release, Blue Linx said the sale would strengthen its balance sheet and position the company better for strategic growth. “We plan to relocate in the surrounding area by the end of the year to continue serving the Northern California market," said BlueLinx CFO Doug Goforth.