Corporate headquarter sale-disposition with short term leaseback

Client
  • CE North America
Space
  • 50,000 sq. ft.
Industry
  • Consumer Products, Houseware/Appliances
Locations
  • Miami
Services Provided
  • Location Strategy & Economic Incentives
  • Transaction Management
Cresa Team
  • Jeff Hartsook

Client Objectives

CE North America was selling its corporate headquarters and relocating its distribution center. They wanted to implement a dropship strategy that would allow them to offer their customers its products without CE having to purchase inventory or dedicate potentially costly warehouse space to store these items. With their new location, CE wanted to find a rightsized, central location in a healthy industrial market. The team engaged Cresa’s Miami team to help:

  • Offload the former headquarter facility;
  • Negotiate a short-term leaseback with the landlord in order to implement an effective relocation strategy for servicing its distribution channels; and
  • Create a marketing plan to dually retain local Miami employees and attract skilled Memphis talent.

Results

CE North America achieved a sale-leaseback with its Miami property with the new owner allowing the company to lease back a portion of the facility. This granted CE time to implement its relocation strategy and move its distribution center to a central location in Memphis.

When marketing the Miami location, Cresa positioned the asset for sale to both investors and owner-occupiers. Several offers were made and ultimately a buyer (owner/user) was selected giving CE North America a healthier sales price.

Cresa utilized its network in Miami and Memphis to achieve the desired outcome for the client. The relocating of the distribution center saved CE North America over 60% in rental costs and centralized its U.S. distribution.

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