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
Locations
  • Atlanta
Services Provided
  • Transaction Management
Cresa Team
  • Michael Bennett
  • Jim Bob Taylor

Client Objectives

  • DH Pace has operated out of three facilities inside the perimeter of Atlanta totaling 113,000 SF since 1997. Due to lack of parking, functionality of the buildings, and exponential growth within the company, business operations were becoming increasingly inefficient. 
  • Cresa was tasked with the following objectives: 

- To locate a +/-150,000 SF industrial building with ample parking and office space in the North Atlanta area, allowing DH Pace to maintain current workforce under one roof.

- To sell its three existing facilities at 221 Armour Drive, 219 Armour Drive, and 279 Ottley Drive, and complete a 1031 tax-free exchange into the purchase of the new facility. 

- To sublease its 40,000 SF warehouse.

Results

  • While Atlanta is at an all-time low vacancy rate for owner user buildings available for sale, Cresa was able to use 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. 
  • Cresa successfully negotiated a three-building purchase for DH Pace's existing industrial facilities. The three 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. 
  • 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
5105 Avalon Ridge Building Photo

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