Expanding and Consolidating a Four-Building Operation to a 170,000 SF Facility

Success Story by Jim Bob Taylor and Michael Bennett for DH Pace Overhead Door
Client
  • DH Pace - Overhead Door
Space
  • 170,000 sq. ft.
Industry
  • Industrial
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Locations
  • Atlanta
Services Provided
  • Transaction Management
Cresa Team
  • Michael Bennett
  • Jim Bob Taylor

Client Objectives

  • Locate a +/-150,000 SF industrial building with ample parking and office space in the North Atlanta area and maintain their current workforce.
  • Sell its three existing facilities and complete a 1031 tax-free exchange into the purchase of the new facility.
  • Sublease its 40,000 SF warehouse.

Results

Locating Off-Market Deal: 

  • Atlanta is at an all-time low vacancy rate for owner user buildings available for sale.
  • Cresa used market research to determine off-market options.
  • DH Pace selected a building that had been on the market for lease for over two years with a local developer.
  • Cresa negotiated a 7-year lease with a purchase option after 6-months. The lease period gave Cresa the time they needed to sell their existing buildings and complete a tax-free exchange into the new building when they exercise their option.

 

Selling Three Existing Sites: 

  • The properties were located inside I-285 and it was determined that the highest and best use for the buildings was no longer distribution but loft office redevelopment.
  • Cresa successfully negotiated a three-building disposition for DH Pace.

 

Subleasing the Warehouse

  • After selling the three existing buildings, Cresa additionally subleased DH Pace’s remaining 40,000 SF warehouse lease at 3331 Green Pointe Parkway, saving the company approximately $520,000.
Jim Bob, Michael and the Cresa team did a great job of successfully arranging a smooth transaction where timing and communications were critical. It was important that all the pieces fell in place in the right order to allow our business to continue operating without a hitch. We are very pleased with our new location, and feel we are now better positioned to achieve our future growth objectives.
John Nale  |  Executive Vice President
DH Pace

279 Ottley Drive

221 Armour Drive, 219 Armour Drive, 279 Ottley Drive

5105 Avalon Ridge Building Photo

5105 Avalon Ridge

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