Case Studies

Brands: Anheuser-Busch, Corona, Red Hook, Widmer, Rolling Rock, Monster, InBev
Property Size: 94,000 square feet
Solution: Warehouse purchased from owner-operator and leased to operator

First Beverage acquired this property from Crown Distributing Co., Inc. in April 2007. Crown leased the warehouse back on a triple-net basis for up to 30 years. Crown built the property in 2002 and realized substantial real estate appreciation due to surging property values in the Seattle area. Founded in 1934, Crown is one of the largest Anheuser-Busch wholesalers in the Pacific Northwest.

"First Beverage's knowledge of the beer industry and expertise in real estate allowed them to deliver an unmatched proposal. The First Beverage team then worked to quickly close the transaction without any headaches or red tape. By working with them, we not only freed up capital for additional brand and territory acquisitions, but we also gained an industry-wise partner."

Peter Bargreen, President and CEO
Crown Distributing

Brands: Coors, Miller, Corona, Boston Beer, Pabst, Guinness, various wines
Property Size: 119,725 square feet (Columbus), 117,250 square feet (Austintown)
Solution: Warehouses purchased from owner-operator and leased to operator

First Beverage acquired two beer distribution warehouses from Superior Beverage Group in January 2007. Founded in 1922, Superior is one of the largest wholesale beer and wine distributors in Northeast Ohio, servicing approximately 8,600 retail accounts in 29 counties. The Columbus property is located directly adjacent to the downtown area where public and private entities have invested nearly $2 billion in downtown revitalization projects, including the construction of a new $150-million, 800,000 square foot arena that is home to the NHL's Columbus Blue Jackets.

"[Our transaction with First Beverage] ... allowed us to deploy capital and provides us flexibility as we move forward with our organic growth and acquisition plans."

John Antonucci, Chairman and CEO
Superior Beverage Group, Ltd.

Brands: Miller, Coors, Imports, Crafts, Wine
Property Size: 534,000 square feet on 62 acres
Solution: Build-to-suit

Monarch Beverage, the largest beverage distributor in Indiana, owned and occupied a 300,000 square foot building on the west side of Indianapolis. With recent acquisitions and anticipated brand expansion, their facility was limiting their ability to operate in an extremely efficient fashion, a hallmark for the firm. As a significantly larger facility was needed, and keeping cash available for business opportunities was of the utmost importance, using an outside source of capital that understands the beverage industry was the best means of achieving the goal.

First Beverage was studied optimal locations within Monarch's territory to determine the ideal warehouse design and sizing and to install a material handling system with sufficient capacity for the 3,000 SKUs Monarch distributes. Monarch followed the team's advice and chose a location on the east side of the city to improve delivery time and reduce fuel expenses. Significant government incentive financing was made available by the local municipality allowing Monarch to build a 534,000 square foot state-of-the-art facility while retaining more than $14 million for further business expansion that would have gone into the property if they owned it.

"First Beverage Capital was by far the best source of capital for the development of our new, state-of-the-art facility. With their beer industry knowledge and real estate development know-how, the First Beverage team was able to custom-tailor an unparalleled capital solution for Monarch Beverage's long-term growth."

Phil Terry, CEO
Monarch Beverage

Brands: Coors, Miller, Corona, Guinness, Sierra Nevada, New Belgium
Property Size: 150,000 square feet
Solution: Warehouse purchased from owner-operator and leased to operator

First Beverage acquired this property from Valley Wide Beverage Company in September 2006. Valley Wide leased the property back on a triple-net basis for up to 30 years. Since the acquisition, the property has been expanded by 30,000 square feet to house Valley Wide's rapidly growing import beer business.

Valley Wide, which began operating in 1985, services six counties and over 3,000 retail customers each week with a territory that stretches 75 miles across Central California. Valley Wide has made more than 10 acquisitions in two decades and received the Miller High Life Achievement Award and the Corona Love Shroud Award in 2004.

"First Beverage not only understands the real estate business, but they understand the beer business also. Our transaction benefited the distributorship and my family members in many positive areas."

Lou Amendola, President
Valley Wide Beverage