Civitas Announces Second Sale-Leaseback With Credit Union 1

Civitas Capital Group, a Dallas-based alternative investment manager offering niche opportunities in U.S. real estate, today announced the firm has closed on the acquisition of Credit Union 1's headquarters in Lombard, IL. The 67,119 square foot office building is leased back to Credit Union 1 under a 15-year, absolute NNN lease.

As part of the transaction, Credit Union 1 agreed to master lease a 43,556-square foot office building in Henderson, Nevada, that Civitas purchased in December 2021. The property, located within Las Vegas MSA, serves as the regional headquarters for Credit Union 1, a credit union with over $1.6B in assets.

Combined, the portfolio has 110,675 square feet and a weighted average lease term of 16.6 years.

"One of Civitas' core investment principles is finding niche opportunities in U.S. real estate that others miss," said Jorge Adler, Vice President, Investments. "This sale-leaseback encapsulates that perfectly, as we took advantage of the dislocation in pricing within the office sector to acquire what we consider a highly attractive asset. The 15-year lease term and the absolute NNN structure of the lease make the cash flows particularly resistant to short-term fluctuations in the economy."

"Our recent transactions with Credit Union 1 demonstrate our value proposition to the credit union community across the U.S.," says Austin Khan, Managing Director of Investments for Civitas, who led the transaction along with colleague Adler. "It highlights our commitment to being a provider of sale-leaseback services to the industry as the unique opportunities brought about by changing regulatory and work environments becomes clear."