BlueLinx Holdings, a distributor of building and industrial products, completed a sale-leaseback transaction for its owned distribution facility in Denver, Co., for net cash proceeds of $10.6 million. As part of the transaction, BlueLinx entered a lease agreement for the property with multiple renewal options, according to a news release.

“I am very pleased to announce the closing of this latest sale-leaseback transaction, which generated meaningful net cash proceeds for debt repayment,” president and CEO Mitch Lewis said in a prepared statement. “We remain in active and ongoing discussions on other opportunities to monetize our owned real estate portfolio as we continue to aggressively pursue our developing strategy.”

The distributor said net proceeds from the transaction will be used to repay indebtedness under the company’s term loan. Following the repayment from the net proceeds of the Denver, Co., distribution facility, the balance of BlueLinx’s term loan was approximately $57.8 million. BlueLinx will no longer be subject to the term loan facility’s total net leverage ratio covenant as long as the principal balance level under the facility is less than $45 million.

Sale-leaseback transactions have been a prominent part of BlueLinx’s strategy over the past couple of years. Most recently, the distributor completed a sale-leaseback for its Elkhart, Ind., distribution facility in March. In February, the distributor completed sale-leaseback transactions at nine properties and completed sale-leaseback transactions at four facilities in January.

Marietta, Ga.-based BlueLinx has a distribution footprint covering 40 states and the company distributes its range of structural and specialty products to approximately 15,000 customers across the United States.