John Deere Dealership Sale and Leaseback

Deere & Company, together with its subsidiaries, manufactures and distributes agriculture and turf, and construction and forestry equipment worldwide.  Deere & Company is a NYSE public company with a Standard & Poor’s debt rating of “A”.

JD Equipment is the dealer and tenant in the three John Deere dealerships.  JD Equipment was incorporated in 1982, has since grown to 8 locations, is Midwest's #1 and USA's Top-10 John Deere Dealer.  The lease is 20 Year Absolute Net Lease with 10% Increase in Year 11 and 5% Increases in each of the 5 Year Options.

Cornerstone Capital Partners has been working with the Principals of JD Equipment for almost two years on the project.  It was very important to provide a sale and leaseback structure that met the accounting, tax and cost requirements of the tenant.  Cornerstone with over 30 years of structured finance experience was able to meet the needs of its client.

Pete Paras, CEO and Chairman of Cornerstone Capital Partners, had this to say about the John Deere Dealership Sale and Leaseback:

“John Deere, founded in 1837, is the gold standard for agriculture and turf, and construction and forestry equipment worldwide.  JD Equipment, incorporated in 1982, is the gold standard for a John Deere dealer.  Cornerstone was honored that it could be of service and create a structure that met and some may say exceeded the desires of JD Equipment.  Cornerstone looks forward to a long term relationship with JD Equipment.  It is great to work with companies like John Deere and JD Equipment and we are grateful for the opportunity.”

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