Facility Highlights
- Manufacturing and Distribution Center for TTI
- Brand new ground-up, high bay bulk distribution building
- Over 1.3 million SF of warehouse space
- Consolidated three local warehouse/ distribution facilities for the tenant that were in the area under one roof
Transaction Summary
- SVN|Angelic’s developer team competed on this deal with several of the largest industrial developers in the country
- Structuring the transaction and achieving the pricing we did allowed the developer to propose the most competitive rent among finalists, and the only one with an option to incorporate the tenant’s material handling equipment into the lease
- SVN|Angelic represented the developer on this transaction and assisted them with negotiation of a financial partnership in which the developer did not need to put down any of their own money and got paid the development fee and a profit markup on the sale
- SVN|Angelic structured a financial partnership to use the buyer as the construction lender, eliminating the risk of future non-performance on the purchase agreement
Key Benefits
- Having the buyer also provide the financing for construction allowed the developer to forgo a construction loan, thereby not needing to invest cash equity of their own (achieved an “Infinite IRR”)
- SVN|Angelic’s negotiation of pre-sale of the project allowed the developer to lock in significant profits prior to breaking ground
- The significant pre-negotiated profit gave the developer an important financial cushion during construction, in a year that had massive rainfall and required several hundred thousand dollars of additional sitework to compensate for the weather conditions