MountainSeed and Harborstone Credit Union Complete $42mm Sale Leaseback Transaction
MountainSeed completes $41.8M sale-leaseback with Harborstone Credit Union.
MountainSeed Real Estate Services, LLC ("MountainSeed"), a Georgia limited liability company, has successfully completed a sale-leaseback transaction with Harborstone Credit Union (“the Credit Union”).
Effective February 19th, 2025, under the terms of this transaction, Harborstone Credit Union finished a portfolio sale of seven properties, which it owned and operated as branch locations, for an aggregate purchase price of approximately $41.8 million, inclusive of customary closing adjustments. These properties are in the immediate vicinity of their headquartered location in Lakewood, Washington.
Concurrently, Harborstone Credit Union entered into a master lease agreement (the "Lease Agreement"), under which the Credit Union will lease back the properties. The Lease Agreement has an initial term of 15 years, with an option for the Credit Union to extend the lease for an additional 15-year term. As part of this sale-leaseback transaction, the Credit Union will continue its operations without closing any offices or exiting any markets, ensuring seamless service to its members, making a long-term commitment to the geographic area, and maintaining its strong presence in the local community.
MountainSeed's continued commitment to conducting sale leaseback transactions further establishes the company as a reliable resource for both Credit Unions and Banks. The transaction provides Harborstone with enhanced financial flexibility in the current economic environment.
“It was a true pleasure working with the Harborstone Credit Union team. There is a high degree of momentum with Credit Unions as many are recognizing that by conducting branch sale leaseback transactions, they can untap non-earning assets on the balance sheet while still committing to their members for the long term”, said Patrick Roberts, Chief Revenue Officer at MountainSeed.
“Our partnership with MountainSeed allows us to unlock capital that can be reinvested into initiatives that directly benefit our members. Rather than keeping funds tied up in real estate, this strategy provides greater flexibility to adapt to evolving member needs while ensuring we maximize the value and resources available to support their financial well-being. MountainSeed were great partners throughout the process and shared our member-centric approach.” noted Geoff Bullock, Chief Executive Officer of Harborstone Credit Union.