Situation

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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

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

 

 

Results

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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.