Consolidating a Real Estate Development Company Closer to its Client Base

Success Story by Hugh Rader for Meritage Homes
Client
  • Meritage Homes
Space
  • 15,898 sq. ft.
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Locations
  • Atlanta
Services Provided
  • Transaction Management
Cresa Team
  • Hugh Rader

Client Objectives

  • Meritage Homes Corporation is an American real estate development company headquartered in Scottsdale, Arizona. Founded in 1985, Meritage has won a multitude of awards ranging from Forbes’ Platinum 400 “Best Big Companies in America” to Texas’ “Builder of the Year” five times in a row.
  • Meritage’s Atlanta office component was in Cumberland Galleria and its retail showroom was in the Perimeter. Cresa was tasked with moving both arms of Meritage closer to its client base in Alpharetta, GA. The client’s upfront building requirements included strong exterior signage, showroom space on the first floor, and 15,000 - 18,000 square feet of office space.

Results

  • Cresa analyzed ~45 properties and toured 7-10 options with the client. After thorough review, Meritage selected the Mansell One building in Alpharetta less than one mile off the interstate.
  • Cresa was able to secure the design center on the first floor with an office component on the fifth floor. Combining the office component with the design center helped bring the two business arms together to build internal efficiency for the Atlanta office.
  • The Mansell One building, located at 3700 Mansell Road, includes roadside signage, signage above the monument sign, and two reserved customer parking spaces with the Meritage logo.
  • Meritage was initially wanting a five-year lease, but the deal could not get done without a creative solution. The TI for the office component was ~$39/SF and the TI for the showroom space was ~$100/SF. The TI amount was almost twice as much that the landlord had initially offered. To make the deal work, Meritage did not negotiate additional free rent or a rent adjustment to the quoted rate. Meritage added a sixth year to its lease and both the landlord and tenant brokers opted to not take a commission on the sixth year.

Meritage Homes

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