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Yellow | Tomorrow begins Yellow Corp's leased properties sale auction!

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Hotboy Ice

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There are 145+ locations up for grabs, in which the company has sublet rights...many of which are prime properties located in major hubs & population centers spread throughout the United States and Canada. In years past, Yellow (YRC Worldwide) owned nearly all of them. Given that LTL shipping doors are selling for well north of $200K/ea in good locations, the company should easily reap $550-$700 Million in additional profits after selling these long-term lease rights. (The combined actual property valuations are worth 3-4 times that amount - but it's not applicable since the debtor no longer owns the real estate.)

**The big wildcard in this Ch 11 multi-auction situation will be new LTL carrier, Next Century Logistics (owned by Sarah Amico of Jack Cooper Transport), likely battling tooth & nail with competitors for these terminal leases (and the remaining 46 Owned properties!) which may drive bids/profits up even more for Yellow Corporation. I'm assessing that large LTL carriers will attempt to squash (or delay at minimum) Next Century's entry into ground freight markets "right now" by scooping up some properties that they didn't really need at the moment...but are critical to NCL as they must obtain numerous, well positioned multi-state terminal/office locations to even get off the ground as a legit carrier. It also wouldn't surprise me to finally hear from the (uncharacteristically) quiet Old Dominion Freight Lines having bid on some of the leases & remaining Owned properties.

Additionally, it's not clear if Yellow's six sizable warehouse locations are included in the previously stated 46 'owned' numbers? If not, this is further positive news for shareholders & creditors. Expect another $600M+ profit for the soon-to-be-auctioned rolling stock & other equipment also. The company will announce an update on leased property sale contracts/details later in the month...which will drive Yellow Corporation's common stock (YELLQ) price above $5/sh. Keep a daily eye on the legal dockets, as news should begin to trickle out soon on which businesses are buying the remaining Owned properties. A handful or two of these real estate properties are large and in sought after locations. Happy Holidays to all!
 
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Iceman25 said:
There are 145+ locations up for grabs, in which the company has sublet rights...many of which are prime properties located in major hubs & population centers spread throughout the United States and Canada. In years past, Yellow (YRC Worldwide) owned nearly all of them. Given that LTL shipping doors are selling for well north of $200K/ea in good locations, the company should easily reap $550-$700 Million in additional profits after selling these long-term lease rights. (The combined actual property valuations are worth 3-4 times that amount - but it's not applicable since the debtor no longer owns the real estate.)

**The big wildcard in this Ch 11 multi-auction situation will be new LTL carrier, Next Century Logistics (owned by Sarah Amico of Jack Cooper Transport), likely battling tooth & nail with competitors for these terminal leases (and the remaining 46 Owned properties!) which may drive bids/profits up even more for Yellow Corporation. I'm assessing that large LTL carriers will attempt to squash (or delay at minimum) Next Century's entry into ground freight markets "right now" by scooping up some properties that they didn't really need at the moment...but are critical to NCL as they must obtain numerous, well positioned multi-state terminal/office locations to even get off the ground as a legit carrier. It also wouldn't surprise me to finally hear from the (uncharacteristically) quiet Old Dominion Freight Lines having bid on some of the leases & remaining Owned properties.

Additionally, it's not clear if Yellow's six sizable warehouse locations are included in the previously stated 46 'owned' numbers? If not, this is further positive news for shareholders & creditors.
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Sounds like a lot of inside information. Is your double top secret job still providing you with information. You’re probably still on the payroll reaping the benefits of the company.
 
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How do you reconcile this with the cure costs needed for the leased terminals?

Also, is that how the sale of leased terminals work? From what I understand, they are not renting it for $x per door so why would they sell it like that?
 
Who in their right mind would buy a lease?
Unless it was for 10¢ on the dollar.
Commercial real estate market is full of vacant space.
Buying a property that can be used, sold or repurposed is one thing.
Buying a lease is ridiculous.
 
No port said:
Who in their right mind would buy a lease?
Unless it was for 10¢ on the dollar.
Commercial real estate market is full of vacant space.
Buying a property that can be used, sold or repurposed is one thing.
Buying a lease is ridiculous.
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Would a farmer lease an office building to raise crops?
Would a bank lease farm ground to operate a bank office from it?
No. Trucking terminals are scarce.
How many vacant trucking terminals, large terminals are setting around on the market? Not to mention the ease of getting into and operating out of an existing facility is much quicker than building new. Some leases may have options to purchase. YRC had a lot of terminals in areas that would not be allowed today, industrial in a residential area. Remember if they sublet a property, meaning they have a locked In lease for x years at say 1 million a year and they can sublease it for 1.5 million that is money that may get into the hands of former employees through bankruptcy court, maybe maybe not. Remember with real estate the 3 most important things, LOCATION,LOCATION, LOCATION.
 
dokman said:
Would a farmer lease an office building to raise crops?
Would a bank lease farm ground to operate a bank office from it?
No. Trucking terminals are scarce.
How many vacant trucking terminals, large terminals are setting around on the market? Not to mention the ease of getting into and operating out of an existing facility is much quicker than building new. Some leases may have options to purchase. YRC had a lot of terminals in areas that would not be allowed today, industrial in a residential area. Remember if they sublet a property, meaning they have a locked In lease for x years at say 1 million a year and they can sublease it for 1.5 million that is money that may get into the hands of former employees through bankruptcy court, maybe maybe not. Remember with real estate the 3 most important things, LOCATION,LOCATION, LOCATION.
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I'm glad somebody on this thread gets it!
 
TheCommish said:
How do you reconcile this with the cure costs needed for the leased terminals?

Also, is that how the sale of leased terminals work? From what I understand, they are not renting it for $x per door so why would they sell it like that?
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That is how they value the property for a quick valuation.. Like when buying real estate many times it is valued by square feet until a appraisal is done..
 
Kennesaw Kid said:
Not really....it's called research.

TBreddit2023.md.jpeg
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True. He also claimed in other post that his position with the company allowed him to have inside knowledge. His capacity was double top secret ( my words) and he could not say what he did as there were only 3 that did his job and telling what he did would reveal what company he worked for. Top secret information from ice25.
Or is it Ai or Artificial Ice information.
 
dokman said:
Would a farmer lease an office building to raise crops?
Would a bank lease farm ground to operate a bank office from it?
No. Trucking terminals are scarce.
How many vacant trucking terminals, large terminals are setting around on the market? Not to mention the ease of getting into and operating out of an existing facility is much quicker than building new. Some leases may have options to purchase. YRC had a lot of terminals in areas that would not be allowed today, industrial in a residential area. Remember if they sublet a property, meaning they have a locked In lease for x years at say 1 million a year and they can sublease it for 1.5 million that is money that may get into the hands of former employees through bankruptcy court, maybe maybe not. Remember with real estate the 3 most important things, LOCATION,LOCATION, LOCATION.
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From everything that I've read on this, your two key points are: 1) some of these locations have "grandfathered" zoning, meaning you couldn't put a new-build in there. 2) There is a potential for sub-market lease costs. Assumption rights to that lease has a definite monetary value.
However, the unknown (to us anyway) is the duration of the existing lease, the possibility of purchase options on that leased property, whether the lease is at sub-market or prevailing market rates, and finally what the cure cost of that lease is before it can be assumed. The auction players have all this information and (presumably) will bid accordingly.
Does Next Century have a legitimate shot at these? My guess is no, but we'll soon find out.
 
No port said:
Who in their right mind would buy a lease?
Unless it was for 10¢ on the dollar.
Commercial real estate market is full of vacant space.
Buying a property that can be used, sold or repurposed is one thing.
Buying a lease is ridiculous.
Click to expand...

Trucking terminals are next to impossible in 2023 to: A. Find Land Thats zoned for transit/trucking use, B. Get the necessary permitting C. Finding anything in a big city like Atlanta, Chicago, LA is next to impossible. They will make a ton of money of the “auctioning” of these leases…..
 
mook said:
Roadway terminal is a half mile from the the old yellow terminal. Estes is in it now
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There is one in Commerce City. I remember the old yellow one husband worked in shop there. not sure the name on the door in Commerce City. But it's newer than the Aurora Roadway one got them messed up.
 
BIG R GUY said:
Maybe Yellow will have enough money left over from the auctions, that Darren will move corporate back to Kansas and start another trucking company.
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Where have you been hiding, R? They did move HQ back to Overland Park a couple of months ago. It's not in the "glass house" It's down the street in what I believe was the old MCI building (it might have been Sprint, though). It's leased space.
 
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