Wells Fargo Supplies $456M Refi for Family Dollar’s Distribution Center Portfolio

The owners of Family Dollar have secured $455.7 million to refinance existing loans on its 7.1 million-square-foot portfolio of leased distribution centers, Commercial Observer has learned.

Wells Fargo provided the floating-rate loan to 1959 RE Holdings, the entity controlled and partially owned by private equity firms Brigade Capital Management and Macellum Capital Management. The refinancing will support Family Dollar’s ongoing operational improvements following Brigade and Macellum’s acquisition of the retailer from Dollar Tree in 2025.

The portfolio spans eight properties in Utah, New York, Oklahoma, Indiana, Iowa, Virginia, Kentucky and Florida, and currently serves approximately 7,100 Family Dollar retail stores nationwide.

A JLL Capital Markets team of Christopher Peck, Christopher Pratt and Alex Staikos arranged the financing.

“The transaction attracted significant lender interest because it sits at the intersection of a successful private equity-led turnaround of a longstanding, recession-proof operating business and mission-critical industrial real estate at an attractive basis,” Peck said in a statement.

The bulk distribution centers have hosted the retailer’s operations for an average of 22.2 years. Locations include 907,000-square-foot facilities at 3949 Family Dollar Parkway in the South Florida city of Marianna, and 155 Fairground Road in Front Royal, Va.