Borgman Capital Completes Sale Leaseback Transaction with Eutectic Corporation

Borgman Capital has completed a sale leaseback transaction with Eutectic Corporation involving the company’s U.S. headquarters facility in Menomonee Falls, Wisconsin. The 78,033 SF industrial facility located at N94 W14355 Garwin Mace Drive continues to serve as the U.S. headquarters for Eutectic Corporation, a leading provider of industrial coating and repair solutions.

“When Eutectic approached us about a potential sale leaseback, we saw a great opportunity to support a strong business while acquiring a high-quality real estate asset in a supply-constrained market with healthy fundamentals,” said Matt Kiefer, Director of Real Estate Investments at Borgman Capital. “We view sale leaseback transactions like this as partnerships that create long-term value for both parties.”

Eutectic Corporation had owned and operated from its Menomonee Falls facility for more than 20 years. By converting their owned real estate into capital through a sale leaseback, the company retained full operational control of the property while gaining immediate liquidity to grow their business.

What is a Sale Leaseback?
A sale leaseback is a real estate strategy where a business sells its owner-occupied property and simultaneously leases it back from the buyer. This allows companies to unlock real estate value tied up in owned assets, providing capital for reinvestment, expansion, or debt reduction—without relocating or interrupting operations.

Key Benefits of a Sale Leaseback for Business Owners
Business owners who own their facilities may find a sale leaseback transaction beneficial for several reasons:

• Fund strategic growth initiatives to drive higher returns for the core operating business

• Extract hidden equity by monetizing full market value of real estate assets

• Generates tax benefits through deductible lease payments

• Access liquidity without taking on new debt or diluting equity

• Retain control of the real estate through a long-term lease

• Establish a strategic real estate partner to support future capital improvements and expansion projects aligned with business growth   

Borgman Capital’s real estate practice helps business owners explore whether a sale leaseback real estate strategy is the right fit based on their long-term objectives. Every transaction is tailored to support operational stability and financial growth.

By converting their owned real estate into capital through a sale leaseback, Eutectic Corporation retained full operational control of the property while gaining immediate liquidity to grow their business.