Educational Development Corporation Announces Sale and Leaseback Agreement of Headquarters and Warehouse Facility
Educational Development Corporation (NASDAQ: EDUC) has executed a Commercial Real Estate Contract to sell its Tulsa headquarters and distribution warehouse (Hilti Complex) for $32.5 million. The transaction, expected to close after a 45-day due diligence period, excludes an adjacent land parcel.
The complex spans 402,000 square feet with existing tenants Hilti (183,800 sq ft) and Crusoe AI (110,000 sq ft). EDUC will lease back its space at $8.00 per square foot with 2.5% annual increases under a 10-year triple-net lease agreement. The sale proceeds will be used to pay off the company's Term Loans and Revolving Loan, improving monthly cash flows as interest savings will exceed rental payments.
Educational Development Corporation (NASDAQ: EDUC) ha sottoscritto un contratto di vendita immobiliare commerciale per la sua sede e magazzino di distribuzione a Tulsa (Hilti Complex) per $32,5 milioni. L'operazione, che dovrebbe concludersi dopo un periodo di due diligence di 45 giorni, esclude un lotto di terreno adiacente.
Il complesso copre 402.000 piedi quadrati con inquilini esistenti Hilti (183.800 sq ft) e Crusoe AI (110.000 sq ft). EDUC prenderà in locazione la propria porzione a $8,00 per piede quadrato con aumenti annuali del 2,5% secondo un contratto di locazione triple-net della durata di 10 anni. Il ricavato della vendita sarà utilizzato per estinguere i Term Loans e il Revolving Loan della società, migliorando i flussi di cassa mensili poiché i risparmi sugli interessi supereranno i pagamenti di locazione.
Educational Development Corporation (NASDAQ: EDUC) ha firmado un contrato de bienes raíces comercial para vender su sede y almacén de distribución en Tulsa (Hilti Complex) por $32.5 millones. La transacción, que se espera cierre tras un periodo de diligencia debida de 45 días, excluye una parcela de terreno adyacente.
El complejo abarca 402,000 pies cuadrados con inquilinos actuales Hilti (183,800 sq ft) y Crusoe AI (110,000 sq ft). EDUC alquilará de vuelta su espacio a $8.00 por pie cuadrado con incrementos anuales del 2.5% bajo un contrato de arrendamiento triple neto a 10 años. Los ingresos de la venta se usarán para pagar los Term Loans y el Revolving Loan de la compañía, mejorando el flujo de caja mensual ya que el ahorro por intereses superará los pagos de renta.
Educational Development Corporation (NASDAQ: EDUC)는 털사 본사 및 물류창고(Hilti Complex)를 $32.5백만에 매각하는 상업용 부동산 계약을 체결했습니다. 본 거래는 45일간의 실사 기간 이후 마감될 예정이며 인접 토지 필지는 제외됩니다.
해당 단지는 402,000 평방피트 규모로 기존 임차인 Hilti(183,800 sq ft)와 Crusoe AI(110,000 sq ft)가 입주해 있습니다. EDUC는 자사 공간을 평방피트당 $8.00에 10년간의 트리플넷(임대료·세금·보험·유지비 부담) 리스 조건으로 임대차 회수하며 연 2.5%의 인상 조항이 적용됩니다. 매각 대금은 회사의 Term Loans 및 Revolving Loan 상환에 사용되어 이자 비용 절감이 임대료 지출을 상회함으로써 월 현금흐름이 개선될 것입니다.
Educational Development Corporation (NASDAQ: EDUC) a signé un contrat immobilier commercial pour vendre son siège et son entrepôt de distribution à Tulsa (Hilti Complex) pour 32,5 millions de $. La transaction, qui devrait se finaliser après une période de diligence raisonnable de 45 jours, exclut une parcelle de terrain adjacente.
Le complexe s'étend sur 402 000 pieds carrés avec les locataires actuels Hilti (183 800 sq ft) et Crusoe AI (110 000 sq ft). EDUC reprendra en location sa surface à 8,00 $ par pied carré avec des augmentations annuelles de 2,5 % dans le cadre d'un bail triple net de 10 ans. Le produit de la vente servira à rembourser les Term Loans et le Revolving Loan de la société, améliorant les flux de trésorerie mensuels puisque les économies d'intérêts dépasseront les paiements de loyer.
Educational Development Corporation (NASDAQ: EDUC) hat einen Vertrag zum Verkauf seines Hauptsitzes und Vertriebslagers in Tulsa (Hilti Complex) für $32,5 Millionen abgeschlossen. Die Transaktion, die nach einer 45-tägigen Due-Diligence-Phase abgeschlossen werden soll, schließt ein angrenzendes Grundstück aus.
Der Komplex umfasst 402.000 Quadratfuß mit den bestehenden Mietern Hilti (183.800 sq ft) und Crusoe AI (110.000 sq ft). EDUC wird seine Flächen zu $8,00 pro Quadratfuß zurückmieten, mit jährlichen Steigerungen von 2,5 % im Rahmen eines zehnjährigen Triple-Net-Leasingvertrags. Der Verkaufserlös wird zur Tilgung der Term Loans und des Revolving Loan des Unternehmens verwendet, wodurch sich die monatlichen Cashflows verbessern, da die Zinsersparnisse die Mietzahlungen übersteigen werden.
- Sale price of $32.5 million will eliminate Term Loans and Revolving Loan debt
- Interest savings will exceed monthly rental payments, improving cash flow
- Company retains ownership of adjacent excess land parcel
- Strong tenant mix with Hilti (15-year lease) and Crusoe AI (10-year lease)
- Two five-year renewal options provide long-term operational flexibility
- Company will no longer own its headquarters and distribution facility
- Additional expenses through triple-net lease terms (utilities, insurance, taxes, maintenance)
- 2.5% annual rent escalations will increase operational costs
Insights
EDUC's $32.5M sale-leaseback deal eliminates debt, improves cash flow, and strategically transforms balance sheet while maintaining operational footprint.
Educational Development Corporation has executed a strategic $32.5 million sale-leaseback transaction for its Tulsa headquarters and warehouse facility. This financial maneuver serves multiple purposes with immediate positive implications for the company's balance sheet and cash flow.
The transaction's primary benefit lies in debt elimination - EDUC will use the proceeds to completely pay off both term loans and revolving credit, significantly de-leveraging the balance sheet. The financial engineering is particularly clever because the company states the interest savings will exceed the new lease payments, creating an immediate positive impact on monthly cash flows.
The property itself is substantial at 402,000 square feet on 37 acres, with only a portion actually used by EDUC. The company has existing long-term tenants (Hilti with a 15-year lease for 183,800 sq ft and Crusoe AI with a 10-year lease for 110,000 sq ft) whose leases will transfer to the new owner. EDUC will then lease back only its needed space under a 10-year triple-net lease at
Management's reference to converting "excess inventory into cash" suggests this move is part of a broader operational efficiency strategy. By retaining the adjacent land parcel, EDUC maintains future expansion possibilities while optimizing its current footprint and capital structure.
The 45-day due diligence period and absence of financing contingency indicate confidence in the deal's completion. The transaction transforms EDUC from a property owner with substantial debt to a leaner operation with improved liquidity and operational flexibility.
Tulsa, Oklahoma--(Newsfile Corp. - August 21, 2025) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", the "Company" or "Seller") (http://www.edcpub.com) today announced that on August 18, 2025, it executed a Commercial Real Estate Contract ("Contract") with Buyer for the sale of the Company's headquarters and distribution warehouse located at 5400-5402 South 122nd East Avenue, Tulsa, Oklahoma 74146 (the "Hilti Complex").
The agreed upon sale price of the Hilti Complex per the executed Contract totalled
Per Craig White, President and Chief Executive Officer of Educational Development Corporation, "Over the last several weeks we have evaluated options to either sell the Hilti Complex or refinance it, with the proceeds to be used to pay back our borrowings with the bank. After this review, and with the support of the new buyer and our brokers, we have decided to proceed with executing a new Purchase/Sale Agreement. We expect to announce the buyer's name following the initial 45 day due diligence period."
"Selling the Hilti Complex and reducing our borrowings is in the best interest of our shareholders, and we expect to have limited working capital borrowings going forward. The interest saved on the reduced borrowings will exceed our monthly rental payments and we will no longer have monthly mortgage payments, providing an immediate improvement to our monthly cashflows. We also expect our cashflow from operations to be very strong in the upcoming years as we convert our excess inventory into cash."
The Complex consists of multiple buildings totalling 402,000 square feet of rentable office and warehouse space on 37-acres. Approximately 183,800 square feet of the Hilti Complex is occupied by Hilti under a 15-year lease. In addition, approximately 110,000 square feet of the Hilti Complex is occupied by Crusoe AI under a 10-year lease. At closing, EDC will assign the existing third-party tenant leases to the Buyer and will execute a separate Triple-Net Lease (the "Lease") for its occupied space in the Hilti Complex.
Per the terms of the Contract, the Buyer will have 45 days to complete due diligence, commencing August 18th, including necessary investigations, inspections, and reviews. The closing of the Contract is to be completed 45 days after the due diligence period. The Contract does not contain a financing contingency.
The terms of the lease will be 10 years, and the initial lease rate will be
About Educational Development Corporation (EDC)
EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales.
Contact:
Educational Development Corporation
Craig White, (918) 622-4522
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/263395
FAQ
What is the sale price of EDUC's Hilti Complex headquarters?
How will EDUC use the proceeds from the Hilti Complex sale?
What are the terms of EDUC's leaseback agreement?
Who are the current tenants in EDUC's Hilti Complex?
When will the EDUC property sale close?
