Weber Wood Medinger Case Studies

Situation

TRW needed to expand their existing braking facility in Queretero, Mexico. Local management requested and received a proposal from a local developer who controlled the adjacent land site to construct a 116,000 SF build to suit project on the adjacent vacant land site for $4.755 SF/Yr with 3%/Yr annual rent increases.

Challenges

WWM engaged a local SIOR broker who was knowledgeable with build-to-suit projects and sources of capital in the Mexican market.

Results

Through a competitive bid process with multiple developers, WWM and the local broker were able to engage a national developer to buy out the local developer (who was undercapitalized), construct a quality building to TRW’s specifications at a rental rate of $4.13 SF with 1.5% annual rent increases which resulted in a Net Present Value savings of more than $807,000 over the ten year lease term.

Situation

Austin Powder had plans to develop a facility to manufacture ammonium nitrate (used in fertilizers) by launching a new company called U.S. Nitrogen.

Challenges

The site needed to be located adjacent to natural gas and ammonia pipelines, as well as rail and major highway access. In addition, the site had to be zoned to allow manufacturing.

Results

After concluding a 5-state search and several site visits with local economic development authorities, a site containing all the criteria was assembled (from 21 different owners) in Tennessee. Land was optioned for due diligence and subsequently purchased after zoning and permits were obtained.

Situation

Invacare had two leased facilities in New Jersey which housed two different divisions. Invacare determined that they could reduce operating and overhead costs by consolidating both locations in one facility.

Challenges

Find a building that was already configured to house both operations (different types of inventory) that could accommodate Invacare’s requirements.

Results

WWM, with the New Jersey CORFAC International affiliate, went to market and found a building that was two-thirds vacant (with a month-to-month tenant in the remaining one third of the building) that very closely matched Invacare’s needs. Invacare was able to move both operations into the facility (each had a different lease expiration) on a staggered basis. Invacare was able to save more than $480,000 in occupancy costs over five years as a result of the consolidation.

Situation

TRW needed to expand their capacity at a 50,000 SF owned facility in Romeo, MI. TRW could either relocate or expand at the current location.

Challenges

The cost to either relocate or expand would have been capital intensive from a real estate perspective.

Results

WWM, with a local Michigan SIOR broker, sent an RFP to local and national developers to buy the existing property, construct 20,000 SF of new space and lease the entire facility back to TRW. The RFP generated eight bids and ranged from $2.2M to $1.5M in Net Present Value of rents on the leaseback. WWM reviewed the bids with TRW and determined that the low bidder (invited by WWM) had both the best overall economic package for the leaseback, in addition to a proven track record at a national level. The completed sale leaseback saved TRW more than $400,000.

Situation

After TRW, Inc. completed a leveraged acquisition of Kelsey - Hayes in 1999, they were looking for ways to raise extra cash to pay down acquisition debt.

Challenges

As TRW’s preferred real estate provider, WWM interviewed several national firms to assist with the review of TRW’s excess real estate in order to convert any excess or underutilized real estate into cash.

Results

After evaluating a survey response from local managers, WWM identified excess properties in the United States, Canada and Mexico. Over $300 million of excess and underutilized real estate was converted into cash through sales, subleasing and leasing in an 18-month period.