|LOCATION||La Vergne, TN|
|PROPERTY SIZE||18,862 SF Industrial|
|FINANCIAL BREAKDOWN||Negotiated savings of 25% below market rates|
McKinney Advisory Group was introduced to HOLDRITE’s president, Tim McConnell, in January of 2014. McKinney has assisted HOLDRITE with real estate transactions in both California and Tennessee. In this Tennessee transaction, HOLDRITE’s current space was inadequate to meet its production needs. McKinney worked with the client to find a more suitable location.
Corporate Real Estate Advisors Peter Quinn and Andrew Meyers interviewed the client at length to understand their real estate needs. HOLDRITE had outgrown its 61,557 SF of manufacturing and distribution space, even though HOLDRITE had more than 7 years remaining on the lease term. HOLDRITE’s current space was not sufficient for the company’s production needs and goals. McKinney analyzed the client’s options in order to find the best result.
McKinney researched the market in order to identify properties to meet the client’s requirements. No single property met HOLDRITE’s production requirements. However, McKinney identified an adjacent property, which was 18,862 square feet and satisfied HOLDRITE’s interim production needs.
McKinney advised HOLDRITE to sub-lease the adjacent property as its improvements satisfied Holdrite’s production requirements.
During lease negotiations, market rents climbed 40% due to limited inventory. McKinney was able to finalize the transaction at 25% below market rates.