Recently Sold – $140M Volkswagen Gulf Coast Vehicle Terminal – Freeport, Texas

Thomas Company is pleased to announce the successful sale of the Volkswagen Vehicle Import Processing Facility in Freeport, Texas. Spanning over 120 acres, this mission-critical logistics hub serves as Volkswagen’s new Gulf Coast Terminal, facilitating the import of over 140,000 vehicles annually from Europe and Mexico for distribution to more than 300 dealerships nationwide.

The property, offered at approximately $140 million, was structured as a zero-cash-flow investment with long-term fixed-rate CTL financing in place. This unique structure provided the buyer with significant tax advantages, including the ability to depreciate their full cost basis due to the asset’s ground lease structure with Port Freeport.

The purchaser was drawn to this investment for its strong credit profile, anchored by a 20-year triple-net lease with Volkswagen Group of America and guaranteed by Volkswagen AG (S&P: BBB+). The transaction was further strengthened by the assumable, fully amortizing mortgage with no balloon payment, offering substantial tax and depreciation benefits.
This transaction highlights Thomas Company’s ongoing commitment to structuring and executing tax-efficient, institutional-grade net lease investments. We extend our sincere appreciation to all parties whose collaboration was instrumental in achieving a successful close.

For more information on similar investment opportunities, please contact Jeffrey Thomas at Thomas Company.