TRW Automotive, Queretaro, MX
Build to Suit
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.
WWM engaged a local SIOR broker who was knowledgeable with build-to-suit projects and sources of capital in the Mexican market.
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.