Expanding and Consolidating a Four-Building Operation to a 170,000 SF Facility
- DH Pace - Overhead Door
- 170,000 sq. ft.
- Transaction Management
- Michael Bennett
- Jim Bob Taylor
client objectives and resultsSee more success stories
- 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.
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